Premium Essay

Erp Report on Smes

In: Business and Management

Submitted By Shail211990
Words 2889
Pages 12
12/1/2012 | |

Submitted by:
Anoop Phanse 11FN-074
Rohit Chandak 11FN-0
Saurabh Rathi 11FN-091
Shail Sheth 11FN-097
Soumyarup Chatterjee 11FN-106
Sourabh Bhave 11FN-107 Microsoft | ERP Implementation in SMEs |


In the post-liberalization and opening up of the economy business era, ease in international trade barriers, economic liberalization, globalization, privatization, disinvestments and deregulations have thrown several challenges to small and medium-sized enterprises (SMEs) in the fast-developing economies like India. Compressed product development cycles, cut throat domestic and global competition, economic downturns, rapidly changing customer demands and volatile financial markets have increased the pressure on SMEs to come up with effective and competitive capabilities to survive and succeed. Enterprise resource planning (ERP) is often considered as one of the solutions for their survival (Rao, 2000).
Up to mid-1990s, SMEs sector in India had operated under much-protected economic regime characterized by limited competition and highly regulated business environment. This business atmosphere had resulted in limited focus on process efficiencies, centralized control structures, highly formalized business settings and lack of professional business practices (Ranganathan and Kannabiran, 2004). However, following the economic liberalization and opening up of the economy to foreign multi-national companies, Indian SMEs have to adopt modern business practices and strategies, which in turn can provide them a cutting edge over its competitors.
ERP software integrates the various functional spheres in an organization – a link through the entire supply chain, aimed at adapting best industry practices, for providing the right product at the right place at the right time at lowest cost. ERP has ability, once implemented,…...

Similar Documents

Premium Essay

Saas Technology for Smes

...| SaaS Technology for SMEs | Kriti Soral | Table of Contents Introduction 2 Small and Medium sized Enterprises 2 SMEs in India 3 SMEs and ERP 3 Barriers to implementation of ERP systems in SME’s 4 Strategies used 5 Saas Technology 5 Advantages of SaaS for SMEs 6 SaaS Vendors 7 Case Studies 7 SAP for 10 Users Company- Heckler & Koch GB 7 SaaS ERP for Oxford Bookstore 9 References 10 Introduction Small and Medium sized Enterprises (SMEs) can mostly be considered as responsible for driving the competition prevailing in economic sectors. The definition and standards of a SME is different for different countries. These enterprises play an important role in setting the market trends and with this a need of using Enterprise Resources and Planning systems (ERP) for optimizing and automating their traditional business processes has aroused. But often ERP systems development, implementation and maintenance are very costly which makes it difficult for SMEs to use them. As a solution to these problems ERP system vendors now offer all the facilities of ERP system to the company without actually installing the hardware and software on the client side and this facility is referred to as Saas technology. This paper discusses SMEs of India, barriers of implementing ERP in SMEs, strategies used by ERP vendors and brief description of SaaS technology. Small and Medium sized Enterprises SME sector has been identified as an accelerator for economic......

Words: 4196 - Pages: 17

Premium Essay

Sme Reports

...1.0 Introduction Excellent Sdn Bhd (ESB) is Malaysia’s leading medical furniture manufacturer. ESB has a target to be a successful recognized manufacturer in providing specialised equipment for today healthcare sector. The company was started on a partnership basis in 1978 by the managing director and his partner. After the partner left ten years later, the managing director started his own business on small scale on Seri Kembangan. He focuses more on the business in private hospital, medical, and clinic. During the early 1990, the managing director changed his company name and registers it as Excellent Sdn Bhd. Three years later the company started to increase the human resources to fifty employees and increase their ability to design and develop new product because they had more machinery. ESB Company keeps on improving their product from very manual basic medical furniture then slowly to the hydraulic to the electrical hydraulic system and electrical motorized medical furniture. Currently ESB now has one hundred employees including those at the warehouse. 2.0 Internal analysis issue 3.1 Marketing issues Marketing issues that found inside the EBS Company are in the beginning, company managed to successfully manufacture their first hydraulic furniture in late 1990s and then supply the first batch to a local private hospital. Two years later the company successfully manufactured their first electric furniture and supplied the first batch to Columbia...

Words: 908 - Pages: 4

Premium Essay

Whats an Erp System ?

...To better understand erp systems and to be able to truly evaluate the most effective systems in the market today, you need to first ask the question, what’s an erp system? enterprise resource planning better known for its shortcut (erp)systems integrate internal and external management information across an entire organization, embracing finance/accounting, manufacturing, sales and service, customer relationship management, etc. ERP systems automate this activity with an integrated software application. The purpose of ERP is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders.[1] ERP systems can run on a variety of computer hardware and network configurations, typically employing a database as a repository for information. After extensive uses and application from thousands of corporation and companies both global and local from mid size to large , we were able to assess and evaluate the ten best current erp systems and they are in none specific order : First, Openbravo Open bravo is a web-based, open source ERP business solution for small and medium sized companies. Already in production, Open bravo ERP encompasses a broad range of functionalities such as finance, supply chain, manufacturing & much more. Open bravo ERP has been designed with broad business functionality to help businesses improve overall performance. It is based on a single, integrated......

Words: 2549 - Pages: 11

Premium Essay

Sme Report

...Introduction The development of small and medium enterprises (SMEs) in developing countries is generally believed to be a desirable end in view of their perceived contribution to decentralized job creation and generation of output. SMEs constitute the dominant source of industrial employment in Bangladesh (80%), and about 90% of the industrial units fall into this category. The actual performance of SMEs, however, varies depending on the relative economic efficiency, the macro-economic policy environment and the specific promotion policies pursued for their benefit. For the JOBS Program, Zaid Bakht (1998) and Salahuddin Ahmad, et al. (1998) developed research papers that describe the policy environment within which SMEs in Bangladesh operate. The reports also discuss the accompanying legal, regulatory and administrative constraints to employment creation by SMEs. This paper attempts to highlight the findings of those two studies. To complement the issues discussed in those two papers, a summary of industrial problems, as perceived by entrepreneurs during the past one decade (HIID, 1988; MCCI 1992; World Bank 1994; JOBS 1998), is also presented in this report. In Bangladesh, SMEs playing a significant role for the development of our economy by creating employment opportunity and producing important alternative machines and machinery parts for saving huge foreign currency for our country. So as a part of our development strategy, we should intensify our efforts to...

Words: 536 - Pages: 3

Premium Essay

Factors Influencing Erp Implementation in Sme in India

...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......

Words: 1366 - Pages: 6

Premium Essay


...Article 1: Exploring new supply chain strategies in manufacturing SMEs Summary: The article explores about the different types of supply chain strategies in manufacturing SMEs. Kamel A. Fantazy, Vinod Kumar and Uma Kumar are professors at Sprott School of Business. They did a research on what kinds of supply chain management strategies are usually adopted by SMEs. A research survey was created and distributed among 1500 Canadian SMEs, out of which only 175 were used as a sample. That’s how many responses were collected. Previously, the supply chain strategies of all the SMEs were classified into the following four: * Modularizing * Appending * Innovating * Following After the responses were computed, it was found out that modularizing and appending does not really exist, but there is another one which has been prevailing the manufacturing SMEs. It is known as Customer Oriented Strategy. So, now there is three types in total which are COS, INS and FOS. The results did not show any correlation with modularizing and appending and hence, were dropped off. Lessons Learnt: * Activities within the supply chain must be Customer Based. SMEs should be Customer Oriented. They should try to satisfy the customer needs. * Understanding customers’ need knowing how to satisfy them, is a key. * Every supply chain must have a Customer strategy. But this is going to be different for every supply chain company because every company is going to adopt a......

Words: 1004 - Pages: 5

Premium Essay

Erp Systems

...will determine the underlying factors that contributed to the development of the ERP system, and the adoption of it, within the world of business. I will also look at the advantages and disadvantages of ERP systems, and the applications available to allow for the cross-departmental access and transfer of data. Finally, it is important for me to develop an understanding of the benefits obtained from the implementation of an ERP system (i.e. the value generated in terms of efficiency, profit maximization, and cost reduction) and how companies mitigate the risks associated with introduction, including employee resistance to change. The ERP System In today’s business environment, companies use integrated information systems to gain competitive advantages. Increasing information system efficiency often results in the effective management of business processes, which is essential to maximizing profit and sustainable growth (Monk, Ellen, & Wagner, 2009). Specifically, Enterprise Resource Planning systems assist in effective management by providing a cross-functional environment that integrates operations and facilitates communication across business units (“ERP Benefits,” 2007). ERP systems can deliver consistent data throughout departments in real time, allowing for better decision making that aligns with corporate-wide strategic objectives and processes (Sutherland, 2003). The ERP systems’ development and progress occurred within the early 1990s as a result......

Words: 2118 - Pages: 9

Free Essay


...Cairo University Faculty of Economics & Political Science Post graduate studies Economic Department Finance for Growth and Role of SMEs An Application to Egyptian Case Prepared by: 1- Amr Hassan Elkady 2- Nashwa Mohamed Hussein Presented to: Prof. Hala El-Saied 2010 In September 2004, the Financial Sector Reform Program was launched and endorsed by the Government of Egypt at the highest political level. The five pillars of the program are reforming the banking sector, restructuring the insurance sector, deepening the capital markets, developing a well functioning mortgage market, and activating other non-bank financial institutions and services. The program aims at improving the soundness of the financial sector and promoting an enabling environment for an efficient, competitive and agile financial system that serves Egypt’s development and growth objectives. The progress and pace of the Egyptian Financial Sector Reform Program have been commended at home and abroad. However, we still have some way to go to fully reform the sector and address its main challenges; one of which is ensuring better access to financial services which is imperative to economic growth and development. Improving access to finance allows businesses, especially small and......

Words: 5415 - Pages: 22

Premium Essay

Erp in Manufacturing Sector

...ERP IN MANUFACTURING SECTOR Group :6 Anubhav Chaturvedi (15) Anirudh Mishra (36) Amol Singh (57) Rohit Patil (60) INTRODUCTION ERP systems have traditionally been used by capital-intensive industries such as manufacturing, Services etc. Manufacturing firms are facing new challenges and in order to stay competitive many manufacturing operations require to be regularly updated with the Information Technology solutions. The manufacturing sector is one of the main economic activities in most of the nations. The most important aspect to characterize IT adoption is the industry and its specific characteristics rather than the country the firms belong to. Different industries have different operating characteristics and environments, and the factors related to ERP use may differ accordingly. Given the complexity of manufacturing firms, we then decide which aspects of a firm influence the use of technological innovations. Most of the manufacturing companies rely on ERP software to manage the entire range of business activities from CRM, manufacturing inventory and processes, accounting software, manufacturing planning, purchasing, quality, and more. For implementing ERP in any manufacturing industry the research objectives revolve around the following parameters(Mainly cost and quality measurement) * To identify whether there is significant difference in performance measures like cost and quality in industries with well defined IT system and industries with not such......

Words: 2952 - Pages: 12

Free Essay

Adoption of an Erp for Smes

...REPORT: PROPOSED ADOPTION OF ERP SYSTEM FOR ALL DIVISIONS I would like to propose an upgrade of our in-house internal Material Requirement Planning (MRP) mostly used by the Engineers to an ERP system which would encompass sales, account payables, finance, supply chain, invoicing and receiving. Our current system works well internally, however, there are several issues that the MRP cannot address. The MRP doesn’t disseminate information to procurement, sales and finance. Also it doesn’t provide information on inventory levels and late deliveries. It’s therefore difficult to make the necessary changes, which would, commensurate with the rapid changing business environment. In addition, the MRP is manufacturing driven and it is only of advantage to the manufacturing divisions. Even in those divisions, communication and the require knowledge for better forecasting and financial planning are lacking. The ERP would improve the entire efficiency of the company’s processes. First and foremost, the ERP would enable all the diverse divisions to work as a single unit, provide a key knowledge development and ensure the seamless workflow of processes. As of now, access to information and data retrieval is difficult and cumbersome to analyze. This reduces the production efficiency of employees. With the ERP system all employees would have access to same information and/or data at the same time. Also the ERP has many modules such as inventory, order management, sales, human resource,......

Words: 857 - Pages: 4

Free Essay

Erp Training

...INTRODUCTION: The article chosen for the critical review is “ERP Training with a web-based electronic learning system: The flow theory perspective” by: Duke Hyun Choi, Jeoungkun Kim, Soung Hie Kim. The article built strengths from the limitations of previous studies. Based from their range of literatures, they have found a gap in the information delivery system which is the lack of theoretical background. Then, exploration and validation of relationships with its key concepts. Through these boundaries the authors evidently stated their objectives. First, to present flow theory as a theoretical foundation in e-learning domain. Second, assess what student perceptive factors are significant to the key constructs: flow (holistic experience) and attitude towards the learning outcome. Third, develop a comprehensive theoretical framework that can be practiced in the e-learning field. After empirically explored with the help of survey questionnaire answered by the students of the ERP training program supported by Ministry of Korea, the antecedents that revealed directly (learner interface and content) and indirectly (interaction, instructor attitude towards students, instructor technical competence) influence the mediating variables thus affect mastery in ERP usage. Results suggested the inclusion of flow experience as new theoretical background and flow theory as a “promising theoretical foundation”. The article was structured logically and comprehensively. For example, in......

Words: 1865 - Pages: 8

Premium Essay

Sme in Malaysia

...International Review of Business Research Papers Vol.2. No.1 August 2006 pp.1-14 An Evaluation of SME Development in Malaysia Ali Salman Saleh∗ and Nelson Oly Ndubisi∗∗ Small and medium enterprises (SMEs) in play a vital role in the Malaysian economy and are considered to be the backbone of industrial development in the country. However, few studies examined their development, challenges and future prospects. Therefore, the aim of this paper is to examine and analyse the role of SMEs in different sectors as well as their major contribution to the economy. The paper goes further to review the existing literature as well as the empirical studies in order to identify the major challenges (domestically and globally) that face this sector. The key messages from the studies examined in this paper are that Malaysian SMEs still face many domestic and global challenges in achieving economies of scale and competing internationally. Among the challenges are the low level of technological capabilities and limited skilled human capital resources, a low level of technology and ICT penetration, low levels of research and development (R&D), a substantial orientation towards domestic markets, a high level of international competition (for example, from China and India), a high level of bureaucracy in government agencies, and internal sourcing of funds. These characteristics suggest that government programs and incentives are either insufficient or not delivered......

Words: 6025 - Pages: 25

Free Essay

Erp Sim Report

...The purpose of this ERPsim report is to facilitate reflection on ERPsim lab activities to maximize the learning outcomes for each activity. The simulation activity will not be a graded exercise, however the report submitted based on the activity will be graded. Reports will be graded based on the following criteria: •Presence of required elements •Communication effectiveness (clear, well-written, professional, etc.) •Quality of content •Degree of detail and specificity in observations •Evidence of insight and learning The report should be based on your most recent simulation activity and is to be an individual activity. The report should be 1-2 pages long at most, and contain the following information: 1. Your name, your team name, the date of the simulation, and what your team's finishing position was in the simulation. 2. An explanation of the strategy and methodology your team employed (i.e. what did you do to compete and why?) 3. What did you think went well? (Strengths) 4. What could be improved for the future? (Weaknesses) 5. List two things you learned during this activity. (Outcomes) 6. Identify which role you were responsible for in your team. Provide a brief explanation of how you used the information in the SAP system to perform your role. What information would help you perform your role better. Please note: Keep in mind that we are using ERPsim as a class activity for various reasons: to learn more about Enterprise Information Systems, to gain...

Words: 412 - Pages: 2

Premium Essay

Erp System Research Study

...Planning (ERP) System has an enormous effect on a business which includes information sharing, business planning and decision making on an enterprise-wide basis, Therefore it allows each department to share information and communicate which greatly benefit for a more productive and effective business flow. ERP is one of the newest Information Technology System which is implemented on all KFC Restaurants around the world which is used to analyze and integrates all of business processes. Enhancing the customer relationship is one of the main features coming under the core objectives of every ERP system, the newest web-based system enables quick generation of inventory, sales and revenue report which is very effective for every QSR Restaurants including KFC. There are various modules in ERP system including Finance, Human Resource Management, Manufacturing, Project Management etc. KFC is a major quick serving restaurant (QSR) with stores located in 109 countries and territories around the world and serves over 12 million customers every day generating nearly $10 billion a year, Founded by Col. Harland Sanders and based in Louisville, Kentucky USA, it is now the world’s most popular chicken restaurant fast food chain specialized in Original Recipe, Hot and Crispy Chicken and freshly made chicken sandwiches. KFC is part of Yum! Brands, Inc., the world’s largest restaurant company in terms of system restaurants with more than 36, 000 locations around the world which implement ERP......

Words: 4927 - Pages: 20

Free Essay

Sme in Bangladesh

...SUMMARY Overall, the SME FDI is currently an extremely valuable initiative. Through appropriate and careful analysis of the data, public policy can be directed yet more efficiently to further improve competitive advantage of Canada's SMEs. In particular, the baseline survey associated with the SME FDI is an extraordinarily valuable research undertaking. It provides the potential to assess directly the extent to which financing gaps might occur in the capital markets on which SMEs rely. This is an important issue in practical terms, in terms of the role of public policy, and in terms of economic and finance theory. The SME FDI baseline survey data provides, for the first time internationally, a means of empirically testing Nobel prize-winning ideas related to information asymmetry and capital rationing. The data provides a means of providing yet better guidance for public policy with respect to addressing potential capital market imperfections that might constrain growth and economic development of SMEs. As designed, the research initiative can and will provide valuable information about these issues. In summary, the baseline survey undertaken as part of the SME FDI is a potentially invaluable resource with respect to the design, targeting, implementation, and follow-up assessment of public policy approaches to nurturing SME growth and viability. The outcomes of this research process could help Industry Canada and its partners to provide Canadian SMEs with substantial......

Words: 5814 - Pages: 24