Erp-Implementation, Strategies

Topics: Enterprise resource planning, Business process management, Business process reengineering Pages: 9 (2876 words) Published: March 20, 2013
1. Executive Summary:
From the last few years, due to the worldwide financial predicament and due to the tough nature of modern business, all the industry sectors are in search of methods of improving their progression and achieving the competitive benefit in their field whether it is a Large, Medium or Small Enterprise. For many economies Small and Medium sized Enterprises (SMEs) are of significant value, they also meet many challenges in implementing technologies such as Enterprise Resource Planning (ERP) systems, even with a lack of human and financial resources to support such initiatives. Similar to all the other different technological progress, ERP systems were primarily implemented mostly at large enterprises. However there are potential benefits in adoption of ERP by SMEs, which has increased the consciousness and the positive opinion. Due to this saturation of ERP in large enterprises ERP vendors are now focusing mainly on SMEs, this helps in globalization and huge flow of information across and within the SMEs. The risks of adoption rely on only the fact that SMEs have specific characteristics and have limited resources which is different from large enterprises. The main focus of this report is to shed the light on observation of implementation of ERP in Large and Small-Medium Enterprise.

2. Introduction:
Purpose – The purpose of this report is to analyse comparatively across the various industry sectors and the large enterprises versus the Small – Medium Enterprises. The report shows the impact of ERP, adoption, implementation of ERP- critical success factors, Acquisition – factors affecting and criteria of selection.

At the initial time of ERP, it was considered to be difficult by almost all the industry in SME sectors, considering the factors like investing huge ample of money in purchasing the software and installing the hardware, collecting the effective manpower for the implementation of ERP. But with the growth, transformation and competition increased the more and more ERP solution providing companies developing the marketing strategies focusing the SMEs. This need has changed the structure of ERP so as to go with the requirements of SMEs. Small firms are certainly the engines of worldwide economic growth as it promotes the development. At the beginning SMEs faced the capital lack and required assistance in technological aspects, the in short supply resources and manpower which made SMEs unaffordable to obtain and run an ERP System. Whereas, it was required to strengthen the competitiveness of SMEs in their domain. This paper briefly reviews the comparative analysis of the implementation of ERP in Large and SMEs and their effect on management. It is widely known that ERP has some disadvantage in SMEs like administrative cost and the expenses, remote structure, insufficient support of SMEs business, serious lack of software flexibility, and high functioning cost. It is easily known that the benefits of ERP are more practical to SMEs than that of the Large enterprises (LEs), as LEs can invest more manpower and money to clear their way of getting the jobs done, but this not moderate with the SMEs. The main risk is of the amount of money that SMEs invest to gain the benefits of and ERP system. So the implementation of ERP needs to be cost effective and easy, less complex process for the SMEs. 3.


Enterprise resource planning (ERP) software is the leading strategic platform which supports the business processes which are enterprise-wide. ERP system emerged in 1990s, it integrated the various cross functional departments which used to function separately before. However it was observed that this system is inflexible in terms of cost and also in meeting the specified requirements of the organization. ERP evolved from the effort in expanding the traditional MRP II systems. ERP system is mainly designed to achieve the quality in manufacturing and operational processes, with...
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