Framework for implementation of enterprise resource planning (ERP) systems in small and medium enterprises (SMEs): A case study

ABSTRACT

Today Small and Medium Enterprises (SMEs) face global challenges and continuous change in consumer demands, most recently COVID-19 and the prospect of a future Serious Acute Respiratory (SARS) pandemic generating further challenges, thus SMEs require to be more flexible to respond quickly to these changes. This can be achieved by transformation into the digital economy, use of Artificial Intelligence (AI) techniques, integrating business processes and to have real-time information which will enable senior management to make better, quicker informed decisions. Enterprise Resource Planning (ERP) is one of the solutions for the SMEs to overcome these challenges and to obtain a competitive advantage. Subanidja, and Broto, 2019 stated that ERP systems are still not widely implemented by SMEs compared to their introduction in large businesses. However, the SME have a justifiable reputation for being proactive, open, willing and receptive to the adoption of new technologies, concepts and improvements. Also, SMEs differ in several inherent characteristics which are likely to impact on the ERP system implementations, hence it does not make sense to use the same frameworks that have been developed for large companies to implement ERP system within SMEs. One of the main risks of adopting ERP in SMEs is that SMEs have limited resources, so they cannot afford to fail to implement ERP system. Therefore, the purpose of this study is to explore ERP implementation process in SME context. The developed framework has been used to implement an ERP system in a SME. It highlighted the issues that need to be addressed while implementing ERP system in SMEs such as clearly defined scope of implementation procedure, suitable project planning and minimal customisation of the system selected for implementation. This study contributed to both research and practice and the research findings could aid practitioners and SMEs when embarking on ERP projects, as well as, to suggest future research avenues. © 2021 The Authors. Published by Elsevier Ltd.