An Effective Model for Evaluating Organizational Risk and Cost in ERP Implementation by SME (original) (raw)
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This paper contributes to the discussion on Enterprise Resource Planning (ERP) implementations in the context of small and medium size enterprise (SME). The ignorance of ERP implementation risks would be the major for SME. Several risk factors have been identified to help enterprises to better manage their ERP. SME needs to contemplate about numerous things, primarily the cost factors of implementation before taking the first step in implementation ERP system. SME has restricted resources, budgets and great sensitivity to costs so ERP implementation is so huge for small enterprise. This study chooses the critical adequate system selection risk and business process re-engineering risk of the ERP implementation, the purpose of this study is to identify and assess relation among these risk factors of ERP through the SME that impact to cost reduction and other hand cost reduction on project success. The instrument used for data collection is questionnaire. Respondents are staffs that have knowledge of the ERP and data from questionnaire analyzed with SmartPLS software.
Risk Management in ERP Project in the Context of SMEs
This paper contributes to the discussion on Enterprise Resource Planning (ERP) implementations in the context of small and medium size enterprises (SMEs). Fewer than 30 % of ERP implementations have been successful, meaning the projects were completed on time, within budget, and with all required characteristics. The principal reason for failure has often been associated with the poor management of ERP implementation projects. Several standardised methods and techniques have been developed to help enterprises to better manage their ERP projects. The purpose of this paper is to identify and assess the main risks in the ERP projects through the case study of three manufacturing SMEs. By using company-specific risk analysis method (RAM), the critical risks of the ERP projects have been identified and assessed. Then, by using characteristics analysis method (CAM), the recommendations of how to divide the ERP projects into manageable sub projects have been given.
Evaluating Critical Success Factors of ERP Implementation in SMEs
International Journal of Recent Technology and Engineering (IJRTE) ISSN: 2277-3878, Volume-8 Issue-2, 2019
This paper is aimed at reviewing present state of the art (1998-March 2019) on the impact of Enterprise Resource Planning (ERP) implementation in Small and Medium Enterprises (SMEs). It includes critical success factors and critical failure factors.The technique depends on writing survey for optional information gathering. It characterizes the expressions that are utilized to get explore papers from databases and advanced studies on the ERP implementation in SMEs. It additionally incorporates the consideration and prohibition criteria to improve nature of papers. At that point methodical audit is made on the accessible papers to research the effect of ERP usage in SMEs.Critical factors are identified for success and failure of ERP implementations and actual impact of the same on SMEs (add actual success and failure factors here besides impact). The research found in this paper has limitations in terms of the period of which research papers have been reviewed. An implicit limitation is that it does not consider an empirical study except focusing on the state of the art found in the research area. However, its insights will have potential benefits and the directions for future work helps in further scope of the research. This paper contributes to the research on the impact of ERP implementation on SMEs either positively or negatively. It discovers critical success factors, critical failure factors and impact through secondary data collection method. The insights will help SMEs and stakeholders of SMEs and ERP service providers to know the reasons for failure or success and take necessary course of action. Keywords: Enterprise Resource Planning (ERP), small and medium enterprises, ERP implementation, failures, success factor.
Formulating, Implementing and Evaluating ERP in Small and Medium Scale Industries
The World Academy of Research in Science and Engineering
To increase the efficiency and productivity, Enterprise Resource Planning (ERP) systems are implemented in corporations. However, the implementation of ERP can be extremely tricky. Due to this, many small and medium enterprises (SMEs) fail to identify the importance of ERP and address its challenge. ERP has a big role to play particularly in developing countries. There is a need to motivate SMEs to implement ERP and make it a successful business in developing countries. This need is evident as SMEs play a vital role in the economic development and stability in the developing countries. However, only a handful of details are publicly available about the success and failure factors of the SMEs in the developing countries. To motivate SMEs, this work aims to provide a list of key critical success factors (CSF) found in various ERP systems in SME related literatures. We are proposing a generic matrix of the important CSFs found in literature. This work identified the top 3 CSFs to be the top management support, change management and project management. This work further proposes a model consisting of different phases of ERP implementation to be followed. In this paper, we attempt to relate the main CSFs with the management decisions. Further, the CSFs are ranked based on the correlation with the success of ERP implementation. This can benefit the SMEs which are considering or implementing ERP better.
Influence of SME characteristics on the implementation of ERP
TELKOMNIKA Telecommunication Computing Electronics and Control, 2020
The ERP market has recently experienced a significant evolution in recent years, both in large companies and in small and medium-sized enterprises (SMEs). Compared to large companies, SMEs are distinguished by specific characteristics that can influence the implementation of the ERP system in these organizations. The purpose of this study is to analyse how these characteristics can determine the success or the failure of ERP implementation in SMEs. First, a set of characteristics, specific to SMEs has been identified from the relevant literature. Then, the influence of each characteristic on the different ERP lifecycle activities were studied. A multiple case study of four SMEs from different sectors was conducted. The data collection was carried out through 28 individual interviews with several stakeholders (users, external consultants, internal IT specialists and managers) in the four cases. The analysis of the interview data showed first that financial resources, Decision making and, the type of ownership of the company were identified as the most influential contextual factors. Then the two phases of the ERP life cycle "implementation" and "use and maintenance" were identified as being the most affected by the context of SMEs. The study results have significant implications for experts, managers and information. Keywords: Enterprise resource planning system ERP implementation ERP lifecycle SMEs This is an open access article under the CC BY-SA license.
Risks and Risk Management in ERP Project - Cases in SME Context
Enterprise resource planning (ERP) projects are considered to be expensive, time-consuming, difficult to manage and risky. This paper presents how companies should consider and manage the risks in their ERP project. The focus in a qualitative case study is on small and medium-sized enterprises (SMEs) and it illustrates how the risks i n the case firms are identified, analyzed and managed.
Critical success factors for ERP implementation in SMEs
ERP implementation is regarded as complex, cumbersome and costly, and, very often, it exceeds the initial estimated resources. The process involves a thorough examination of the business processes in the organisation; selection of the best available software solution that matches the requirements of the enterprise; configuration of the selected systems;, training of staff; and customisation of the selected software solutions including development of required interfaces. Finally, the existing MIS of the organisation is replaced totally or partially by the new system. All the implementation processes should be carried out without affecting the daily operations across the whole enterprise. This can only be achieved by having an understanding of the key elements forming the infrastructure of the organisation , an effective plan for the implementation and an effective procedure to measure and evaluate the project throughout the implementation process. This paper presents the results of a study to identify and analyse the interrelationships of the critical issues involved in the implementation of ERP in small and medium sized enterprises (SMEs). Three basic research questions were addressed. First, what are the main critical success factors? Second, how do these factors interact throughout the implementation process? Third, which factors have their highest impact and in what stages? In order to answer these questions, over 50 relevant papers were critically reviewed to identify the main critical success factors (CSFs) for ERP implementation in large organisations. Then, the applicability of the identified CSFs to SMEs was investigated. Next, an industrial survey was also undertaken to identify which CSF has highest impact in what stages. The findings on relationships of the critical success factors have been utilised to develop a tool to monitor, and eventually improve, ERP implementations for SMEs. In the development of the tool, eight people from industry and academia with experience of ERP implementations were interviewed with the aim of validating the model being developed. The overall results provide useful pointers to the interplay of organisational and operational factors for the successful implementation of ERP.
Full Text Back to previous page A STUDY OF ISSUES AFFECTING ERP IMPLEMENTATION IN SMEs
Companies implement ERP systems to integrate the business processes of a company, and help organizations obtain a competitive advantage. Enterprise Resource Planning (ERP) is one of the solutions for the Small and Medium Enterprises (SMEs) in order to face the global challenges. This paper attempts to explore and identify issues affecting Enterprise Resource Planning (ERP) implementation in context to Indian Small and Medium Enterprises (SMEs) and challenges in front of SMEs. This paper attempts to highlight those specific issues where a different factors needs to be addressed while implementing the ERP system in this the four issues are proved to be crucial for SMEs such as proper system implementation, clearly defined scope of implementation procedure, proper project planning and minimal customization of the system selected for implementation. [PUBLICATION ABSTRACT]
Factors responsible for successful ERP implementation in small and medium-sized enterprises ( SME )
2017
Factors responsible for successful ERP implementation in small and medium-sized enterprises (SME) Prafulla Bafna, Shikhar Dang, Raghav Sethi, Raunak Chaudhary, Saatvik Shukla Symbiosis Institute of Computer Studies and Research (SICSR), Symbiosis International University (SIU), Atur Centre, Gokhale Cross Road, Model Colony, Pune – 411 016, Maharashtra, INDIA _________________________________________________________________________________________ Abstract: Enterprise Resource Planning or ERP, is a system that helps organizations manage their departments like finance, human resources, manufacturing etc. ERP systems can be set up on-premises or deployed on the cloud to automatize major functionalities of the business. If ERP implemented successfully in the business, it helps the organization to meet its business requirements, by providing the organization with a homogenous view of the different business tasks and processes, which helps in decision making to enhance team’s overall prod...
FRAMEWORK FOR THE EVALUATION OF THE ERP IMPLEMENTATION SUCCESS: CASE STUDY IN SMEs
2021
Given the importance of the changes to the ERP system introduced by the integration, but also the complexity of implementing this software solution, it is not surprising that the transition to an ERP is difficult and expensive, without any guaranteed return on investment. As a result, the company is faced with a paradoxical situation: on the one hand, the high earning potential from the ERP system and, on the other hand, the serious risks of failure. This research questions the determinants of success and the benefits of adopting this integration technology. To answer this question, an analysis of the literature made it possible to formulate an original research model for evaluating the success of ERP from a perspective of integrating IT applications. The model, thus proposed and compared to the SMEs context, examines, according to a systemic approach, the relationship between (1) the determinants of the success of ERP adoption, (2) the characteristics of the ERP system implementati...