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Critical Success Factors for ERP Implementation in SMEs

The different CSFs for ERP Implementation in SMEs are :-

1) Reduction in Operating Costs
2) Reduction in Administrative Costs
3) Inventory Reductions
4) On-Time Delivery of Products and Services
5) Improvement in the Overall Work Efficiency of the SME
6) Better Customer Relationship Management

LITERATURE REVIEW :- SUMMARY OF RESEARCH PAPER 5

Research Paper Title: -

ERP Implementation for Midsize companies: Necessary Expense or Strategic Investment?

Research Paper Author:-

Vinay Singh, CEO, Vital Wires Consulting 

Summary and Learning:-

The research paper discusses the effects of enterprise resource planning (ERP) to small/medium-sized enterprises (SMEs). It says that the main ERP problem faced by SMEs is their limited resources while the product exceeds their standards. It says that implementing the ERP product properly is as essential as the product itself. It also presents the sources of the return on investment, including lower operation cost, higher serviceability to customers, higher throughput, lower cost of compliance and faster inventory turns.

LITERATURE REVIEW :- SUMMARY OF RESEARCH PAPER 4

Research Paper Title: -

Critical elements for a successful enterprise resource planning implementation in small-and medium-sized enterprises

Research Paper Authors:-

T. C. Loh, S. C. L. Koh

Summary and Learning:-

The research paper aims to examine the critical elements that constitute a successful ERP implementation in SMEs. The objective of the author was to identify the constituents within the critical elements. A comprehensive literature review and interviews with eight SMEs in the UK were carried out. The results served as the basic input into the formation of the critical elements and their constituents. Three main critical elements were formed: critical success factors, critical people and critical uncertainties. Within each critical element, the related constituents were identified. Using the process theory approach, the constituents within each critical element were linked to their specific phase(s) of ERP implementation. Ten constituents for critical success factors were found, nine constituents for critical people and 21 constituents for critical uncertainties. The research suggested that a successful ERP implementation often requires the identification and management of the critical elements and their constituents at each phase of implementation. The results were constructed as a reference framework that aims to provide researchers and practitioners with indicators and guidelines to improve the success rate of ERP implementation in SMEs.

LITERATURE REVIEW :- SUMMARY OF RESEARCH PAPER 3

Research Paper Title: -

ERP in Indian SME’s: A Post Implementation Study of the Underlying Critical Success Factors

Research Paper Authors:-

Parijat Upadhyay, Pranab K Dan

Summary and Learning:-

The research paper examines the Critical Success Factors (CSFs) firms should focus on to be successful post ERP Implementation. The research presented here was specifically targeted to the SME’s which already completed the process of adopting an ERP system to bring out the critical success factors which can prove decisive for success. The feedback was obtained from 150+ responded who were from various forms of industries, which are essentially SME in nature and have implemented ERP. The different CSFs were Goal & Objective, Improve Work Efficiency, Top Management Support, Project Management, Project Champion, Project Team Competency, Infrastructure, ERP Importance, and User Training. The research is useful for ERP vendors and more so in present economic scenario where the SME’s have to be convinced regarding the return on their investment as a result of their investment in ERP packages.

LITERATURE REVIEW :- SUMMARY OF RESEARCH PAPER 2

Research Paper Title: -

ERP Systems Diffusion among SMEs: Does Development of Open Source ERPs Play a Role

Research Paper Author:-

Bjorn Johansson

Summary and Learning:- 

The research paper emphasise on the combination of open source and ERPs and specifically on what role development of open source ERPs plays in diffusion of ERPs among SMEs. In order to explain the interest in open source ERPs, an investigation about challenges, which a proprietary ERP vendor suggests exist in ERP development today were used. These challenges were then compared with the open source ERP alternative. The author’s research combined literature reviews, interviews with executives in an ERP software vendor and an investigation of a distribution channel of open source projects. The focus was on differences between proprietary ERP development and open source ERP development and if, and if so, how these differences could influence future ERP diffusion among SMEs. Based on the identified challenges, the discussion was then on if and how open source ERP systems have a potential for SMEs in the future. It was concluded that open source ERP development has a great deal to offer, but the main conclusion is that the difference is mainly on the development side, which means that it can be suggested that for the actual diffusion of ERPs among SMEs, it does not matter whether the ERP is open source or proprietary, however for SMEs open source ERPs could probably increase their interest in ERPs and thereby act as an influential factor in diffusion of ERPs among SMEs.