Sme Analysis
Factors influencing ERP implementation in manufacturing industries in India
Introduction
The global financial crisis provided an opportunity to many small and medium scale Indian enterprises to expand their business operations to other countries by acquiring businesses overseas. The crisis made many such companies change their way of conducting business by adopting sophisticated business practices. Such an initiative has taken them a step closer to their larger business conglomerates in terms of enhanced competitiveness and efficiencies. By implementing enterprise wide information technology (IT) solutions, Indian micro, small and medium scale enterprises (MSMEs) are giving themselves a chance to emerge as big players. This technology enhancement boosts their overall brand image amongst their export partners and increases their chance to grow bigger in the domestic market as well.
ERP systems (a very popular form of enterprise-wide IT solution) are designed to achieve integration and streamlining of internal processes by providing a suite of software modules that cover all the functional areas of a business. However, increasingly we hear of the failure of ERP implementations (Davenport, 1998). The authors have studied MSME organizations in the manufacturing sector and have reported failure at ERP implementation. As a result, there has been expanded research focusing on the implementation process.
Objective
The purpose of this paper is to present the findings of a study which is based on the results of a comprehensive compilation of literature and subsequent analysis of ERP implementation success factors in the context of Indian micro, small and medium-scale enterprises (MSMEs). The paper attempts to assess empirically which factors are most critical in the ERP implementation process from the perspective of the Indian MSMEs. This research is potentially aimed at being useful to MSMEs as a guideline, so as
Introduction
The global financial crisis provided an opportunity to many small and medium scale Indian enterprises to expand their business operations to other countries by acquiring businesses overseas. The crisis made many such companies change their way of conducting business by adopting sophisticated business practices. Such an initiative has taken them a step closer to their larger business conglomerates in terms of enhanced competitiveness and efficiencies. By implementing enterprise wide information technology (IT) solutions, Indian micro, small and medium scale enterprises (MSMEs) are giving themselves a chance to emerge as big players. This technology enhancement boosts their overall brand image amongst their export partners and increases their chance to grow bigger in the domestic market as well.
ERP systems (a very popular form of enterprise-wide IT solution) are designed to achieve integration and streamlining of internal processes by providing a suite of software modules that cover all the functional areas of a business. However, increasingly we hear of the failure of ERP implementations (Davenport, 1998). The authors have studied MSME organizations in the manufacturing sector and have reported failure at ERP implementation. As a result, there has been expanded research focusing on the implementation process.
Objective
The purpose of this paper is to present the findings of a study which is based on the results of a comprehensive compilation of literature and subsequent analysis of ERP implementation success factors in the context of Indian micro, small and medium-scale enterprises (MSMEs). The paper attempts to assess empirically which factors are most critical in the ERP implementation process from the perspective of the Indian MSMEs. This research is potentially aimed at being useful to MSMEs as a guideline, so as