Thesis: Enterprise Resource Planning in small Enterprises

Sample Thesis Paper

The incremental improvement in information technology and the drastic reduction in prices of computers have made it possible even for the small organisation to think about ERP system (Gupta, 2000). As the ERP market for larger organisations have begun to saturate (Chen, 2001; Everdingen et al., 2000; Ekanayaka, 2002), most of the ERP vendors have started to target small and mid-sized companies(SME) market (Chen, 2001; Reilly, 2005; Menawat, 1999; Brown, 1997; Bolan, 2003; Saunders (1998a); Saunders (1998b); Koh et al., 2004; Chalmers, 1999; Everdingen et al., 2000 ) Some of the major reasons why SMEs have not been able to adopt ERP systems were due to the partial failures of many of their larger counterparts (Muscatello et al., 2003) and secondly, due to the lack of financial resources (Ferman, 1999).

Rao (2000) states that with the opening up of the economy, SMEs have found it very tough to be competitive and customer oriented as they do not have the robustness associated with large companies. He suggests that SMEs have to tap the power of IT and integrated information system and ERP is the answer for their survival. Koh et al. (2004) state that one of the main drivers of the emerging trend of SMEs implementing ERP systems is the pressure from the big players (their business customers). Leading manufacturers are forcing the smaller businesses supplying them to become as efficient and cost-effective as they are (Chalmers, 1999).Thus, many SMEs need to be equipped with this type of technology in order to provide a better and competitive service to their customers (Koh et al., 2004).

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