Advancement of ERP in Small and Medium Enterprises (SMEs)

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Dr. Christian Trefftz, trefftzc@gvsu.edu

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The purpose of this paper is to understand the concept of Enterprise Resource Planning (ERP) and how it has advanced in small and medium enterprises (SMEs). ERP is the most talked about word in the business world these days. ERP is a method for integrating data and the processes pertaining to an organization in one whole system. The ERP field is under continuous research and development. A number of companies have made efforts to implement ERP systems into their existing business systems. This paper concentrates on the efforts made by small and medium sized enterprises. The concept of Enterprise Resource Planning (ERP) has been studied in detail during the course of the project. The resources were drawn from a number of research articles on the subject. The types of ERP software programs that are available for companies are explored. The characteristics of different open source and proprietary software programs available in the market today are compared. The paper explains the implementation of ERP in Small Medium Enterprises (SMEs). This is elucidated by surveys conducted on two manufacturing companies which have successfully implemented ERP. The Critical Success Factors (CSFs) involved while implementing the ERP are also discussed briefly. The paper helped us to understand the advantages and limitations of the various ERP software applications and their limitations. The surveys conducted on the companies helped us understand the advancement of ERP in SMEs.

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