ERP Implementation Lifecycle in SMEs – A Review

Author(s):  
Jitendra Singh Tomar

Saturation is visible in ERP implementation in large enterprises but has huge potential in SMEs. With SMEs impacting large portion of economy, the focus has shifted to globalization, building partnerships, developing value networks, and managing the huge information flow across and within SMEs nowadays. Due to rising business demands, SMEs are adopting ERP systems and the vendors now focus more on implementing ERP in SMEs for effective information management. The current study summarizes research on enterprise resource planning (ERP) systems implementation within the domain of small and medium-size enterprises (SMEs). The SMEs suffer from resource poverty which increases the risk of ERP adoption. SMEs are structured very distinctively compared to LEs, thus the ERP implementation model, practices, and methodologies are different from Les and should be perceived differently. The main purpose of this article is to observe the areas that lack sufficient research within the ERP in SMEs domain, appraise with current research findings that could felicitate practitioners, suppliers, and SMEs while implementing ERP in SMEs, and suggest research avenues for future. Moreover, this study signifies the current practices in SMEs, the impellingtheories, and adaptive frameworks that are discussed in existing literature on ERP implementation in SMEs.

Author(s):  
Stella Nafula Khaemba

Enterprise resource planning (ERP) systems are increasingly being adopted by many organizations. The cost, time, and effort of the organization need to be reflected in the uptake and use of the system by employees of the organizations in question. ERP system implementation readiness is positively associated with the ERP implementation success. It is therefore important to measure the success of such software in adopting firms which largely influenced by the readiness of the firm for ERPs. Many studies focus on other aspects of readiness leaving out the major players who are employees. This chapter discusses an effort towards extending CREM evaluation model for employee readiness with the aim of highlighting the role of their readiness in the overall success of ERP implementation. Research findings of this study help decision makers of organizations to attain a comprehensive picture about required actions to be accomplished for achieving readiness for implementing an ERP system.


Author(s):  
Jessy Nair ◽  
D. Bhanusree Reddy ◽  
Anand A. Samuel

Organizations require to enhance their firm level resources to compete in turbulent business environment. Strategic application systems, such as an Enterprise Resource Planning (ERP) System is one such resource technology that centralizes the database of the organization to enable a seamless view of the organization. However, implementation of ERP systems in organizations has not been a success story for many. ERP systems implementation brings about large scale organizational change and hence it becomes essential for stakeholders to have a reference framework for planning for various dimensions of the organization. Hence this chapter applies a General Morphological Analysis(GMA) to identify the most suitable theory to analyse ERP implementation. Socio technical theory with Leavitt's diamond model was analysed as most appropriate since they are based on the of premises organizational change at firm level. Socio technical organizational change model will enable stakeholders to analyse resources required for core dimensions of the organization for ERP implementation.


Author(s):  
Magdy Abdel-Kader ◽  
Thu Phuong Nguyen

Enterprise Resource Planning (ERP) systems have been recognized as complex and costly, which limited their implementation in large organizations. However, an increasing number of small organizations have recently gained interest in this system. This paper investigates the implementation process of ERP in a small firm. The investigation focused on two perspectives of ERP implementation: successes achieved and problems encountered. Despite many problems encountered in the firm, the ERP system still exists. This gives evidence that small organizations are more flexible and motivated to adapt to change and implement an ERP system. Most problems were encountered at early stages of implementation, which can be minimized if deliberate decision making of ERP implementation and proper selection processes were in place. Further, ERP is a good solution for small organizations if they are able to build a relevant in-house system.


2010 ◽  
pp. 1916-1945
Author(s):  
Carmen de Pablos Heredero ◽  
Mónica de Pablos Heredero

The implementation of an Enterprise Resource Planning System (ERP) is a risky and high cost action, even more when we are dealing with small and medium sized enterprises. Although many studies have shown the importance of paying attention to critical success factors in ERP implementations, there is still a high degree of failures and bad experiences around ERP implementations. Most literature has shown experiences of success and failure coming from large sized firms. But there is a lack of information of what has happened in the area of small and medium size firms, and for some economies, they are essential. In this chapter, we try to show a model containing the main elements that can better explain the degree of success and of failure in ERP implementations by providing examples mainly affecting to the circumstances of small and medium size firms. In our model, we propose 5 main groups of variables affecting final results in ERP implementations.


Author(s):  
Joseph Sarkis ◽  
R.P. Sundarraj

The integration of enterprise systems and the supply chain to an organization is becoming more critical in an ever-changing, globally competitive environment. Quick response will require close relationships, especially communications and information sharing among integrated internal functional groups as well as the suppliers and customers of an organization. Texas Instruments (TI), headquartered in Dallas, Texas, has come to realize this requirement for building and maintaining its competitive edge. Thus, it sought to implement an enterprise resource planning (ERP) system with a focus on linking it with a global electronic commerce (e-commerce) setting, an innovative and current issue (Weston, 2003). There were a number of major players, including project management direction from Andersen Consulting Services, software vendors such as SAP and i2 Technologies, hardware vendors such as Sun Microsystems, and various suppliers and customers of TI. The purpose of this case is to provide some aspects of implementation of strategic systems that provide valuable lessons for success. We begin and rely on the foundation of a strategic systems implementation model, which is initially described. A description of the case follows, with the various stages as related to strategic systems implementation described. We complete our discussion with implications and conclusions.


2011 ◽  
pp. 758-765
Author(s):  
Leopoldo E. Colmenares ◽  
Jim O. Otieno

An enterprise resource planning (ERP) system is an integrated set of programs that provides support for core organizational activities, such as manufacturing and logistics, finance and accounting, sales and marketing, and human resources. An ERP system helps the different parts of an organization share data and knowledge, reduce costs, and improve management of business processes. In spite of their benefits, many ERP systems fail (Stratman & Roth, 1999). Implementing an ERP system is a major undertaking. About 90% of ERP implementations are late or over budget (Martin, 1998), and the success rate of ERP systems implementation is only about 33% (Zhang et al., 2003).


Author(s):  
Leopoldo E. Colmenares ◽  
Jim O. Otieno

An enterprise resource planning (ERP) system is an integrated set of programs that provides support for core organizational activities, such as manufacturing and logistics, finance and accounting, sales and marketing, and human resources. An ERP system helps the different parts of an organization share data and knowledge, reduce costs, and improve management of business processes. In spite of their benefits, many ERP systems fail (Stratman & Roth, 1999). Implementing an ERP system is a major undertaking. About 90% of ERP implementations are late or over budget (Martin, 1998), and the success rate of ERP systems implementation is only about 33% (Zhang et al., 2003).


Author(s):  
Reinaldo José De Freitas ◽  
Helder Gomes Costa ◽  
Valdecy Pereira ◽  
Eduardo Shimoda

Purpose – This paper aims to identify criteria that can be used in assessing the successful implementation of ERP (enterprise resource planning) in large companies. Design/methodology/approach – Based on a systematic review conducted in 74 selected articles from a survey performed in Scopus bases and Institute for Scientific Information (ISI) Web of Science, an initial set of 34 criteria was defined and used for evaluating the implementation of ERP systems. This set was submitted to a sample of 111 experts in ERP for evaluation via electronic forms provided through the EncuestaFácil site. The collected data were treated by applying the Content Validity Ratio (CVR) method. The criteria selection is based on the integration of two methodological approaches: systematic review and the application of CVR method for validation of ratings issued by experts. Findings – As a result of the research, 25 criteria were identified and validated to evaluate the implementation of ERP systems, focusing on large Brazilian companies. Practical implications – The research results can be very useful to managers using ERP systems and have significant utility for organizations that develop ERP systems. Originality/value – According to studied literature, no previous study has used this integration in the identification of criteria for assessing the implementation of ERP systems in large Brazilian companies. On the other hand, the use of these two approaches assured confidence in the validity of the findings.


Author(s):  
Kalinga Jagoda ◽  
Premaratne Samaranayake

Purpose The purpose of this paper is to propose an alternative integrated approach based on the stage-gate method to implement enterprise resource planning (ERP) systems which will enhance the effectiveness of ERP projects. Design/methodology/approach A literature review was conducted on ERP system implementation and its effectiveness. The need for improving implementation approaches and methodologies was examined. Based on the insights gained, a conceptual framework for ERP system implementation is presented by combining the state-gate approach with the pre-implementation roadmap. Findings The proposed framework aims to enhance the overall ERP implementation outcomes, ensuring critical success factors and eliminating common causes of failures. A pre-implementation roadmap is identified as a key element for eliminating many causes of failure including lack of organisations’ readiness for ERP. The post-implementation stage can be used for further improvements to the system through internal research and development. Research limitations/implications The development of the framework is an attempt to contribute to improving ERP implementation. This research is expected to motivate researchers to work in this area, and it will be beneficial to practicing managers in the identification of opportunities for improvements in ERP systems. Case studies will be valuable to refine and validate the proposed model. Originality/value This paper explores research in a needy area and offers a framework to help researchers and practitioners in improving ERP implementation. This framework is expected to reduce the implementation project duration, strengthen critical success factors and minimise common problems of ERP implementation projects.


2021 ◽  
Author(s):  
◽  
Quang Nguyen

<p>Although Enterprise Resource Planning (ERP) systems alone are not the source of competitive advantage, they may do this indirectly through enhancing or supplementing the organization’s other strategic resources. Studies on ERP have not explicitly examined the interactions of ERP systems with other organizational capabilities to determine how investment in ERP systems can be leveraged into the creation of strategic resources of organizations.  Further, ERP systems are large and complex, and the degree to which they are implemented throughout an organization can vary – this is described as the ERP scope. The scope of ERP implementation is believed to influence the degree of its effects on an organization. Relying on the literature on ERP effects, business value of information technology (IT) and the notion that organizations are learning systems which utilize their knowledge to create value and to accumulate further knowledge, this study examines the influence of the scope of ERP implementation on a strategic resource of organizations, namely intellectual capital, under the moderating effect of organizational learning capability.  This study develops a research model to show the influence of the three dimensions of ERP implementation scope (breadth, depth, and magnitude) on intellectual capital and simultaneously the influence of organizational learning capability on these base relationships. The hypothesized relationships among variables are evaluated by a data set of 226 responses collected from manufacturing firms in Vietnam. With the support of SmartPLS version 2.0, the structural equation model is evaluated using the techniques of multiple regression analysis, and the moderation effects are analyzed using group comparison and product term approaches.  The findings provide support for the hypotheses. The three dimensions of ERP implementation show a positive impact on intellectual capital. Organizational learning capability more or less moderates the relationship between ERP implementation scope and intellectual capital. As a result of the group comparison approach for moderation analysis, firms with a low level of learning capability are likely to have no effect of ERP implementation on intellectual capital. However, in the group with a high level of learning capability the breadth and magnitude of ERP implementation have a positive effect on intellectual capital. By using the product term approach, only the magnitude of ERP implementation shows an interaction effect with organizational learning capability on intellectual capital. The breadth and depth of ERP implementation appear to have minimal interaction with organizational learning capability.  The results inform the literature on the business value of IT by demonstrating that an ERP system can become a strategic asset as its implementation has a positive effect on intellectual capital especially with the presence of a firm’s learning capability. Additionally, the research reveals another ERP effect (e.g. the effect on the intellectual capital of organizations) that complements the understanding of ERP effects that have been identified in prior studies. The findings practically contribute to managerial knowledge by showing that ERP implementation should not be considered in isolation, but rather organizations should build a substantial level of learning capability to fully obtain the positive effect of ERP implementation on intellectual capital.</p>


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