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 |

Introduction

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,…...

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