FACTORS INFLUENCING THE ADOPTION AND IMPLEMENTATION OF ENTERPRISE RESOURCE PLANNING (ERP) SYSTEM IN THE SMES SECTOR

2017 ◽  
Vol 2 (1) ◽  
pp. 62 ◽  
Author(s):  
James Kiarie ◽  
Mr. Walter Wanyama
Keyword(s):  
Enterprise Resource Planning ◽  
Resource Planning ◽  
Target Population ◽  
Sustainable Competitive Advantage ◽  
Erp Systems ◽  
Internal Factors ◽  
Erp System ◽  
Factors Influencing ◽  
Adoption And Implementation ◽  
The Government

Purpose: The purpose of this study was to investigate the factors that influence ERP systems adoption and implementation in SMEs in Kenya.Methodology: The research adopted a descriptive design. The target population was 4560 SMEs in Kenya. A sample size of 87 SMEs was selected. The respondents were identified through probability sampling in the form of stratified sampling.  The collection of data was conducted through the use of questionnaires and thereafter data coding was done then followed by data presentation via graphs, tables as well as pie charts. These were then analyzed through both descriptive statistics (frequencies and means as well as inferential statistics (correlations).Results: The findings revealed that organization resources bring about success of ERP related organization change. The findings on the influence of internal factors on ERP system implementation revealed that indeed the internal factors influencing the adoption of ERPs in SMEs in Kenya include; the top management of SMEs, project team constitution as well as the above average knowledge requirements.Unique contribution to theory, practice and policy: The study recommends that SMEs in Kenya need to put into consideration, continuous introduction of ERP systems. Additionally, the study recommends that the government regulations as well as the other external factors should be aligned in a way that ensures that there is room for companies to explore means of adopting and implementing ERP systems so as to be able attain sustainable competitive advantage.

scholarly journals Prioritising Organisational Factors Impacting Cloud ERP Adoption and the Critical Issues Related to Security, Usability, and Vendors: A Systematic Literature Review

Sensors ◽  
2021 ◽  
Vol 21 (24) ◽  
pp. 8391
Author(s):  
Sayeed Salih ◽  
Mosab Hamdan ◽  
Abdelzahir Abdelmaboud ◽  
Ahmed Abdelaziz ◽  
Samah Abdelsalam ◽  
...  
Keyword(s):  
Literature Review ◽  
Systematic Literature Review ◽  
Enterprise Resource Planning ◽  
Success Factors ◽  
Resource Planning ◽  
Integrative Model ◽  
Erp Systems ◽  
Erp System ◽  
Adoption And Implementation ◽  
Critical Issues

Cloud ERP is a type of enterprise resource planning (ERP) system that runs on the vendor’s cloud platform instead of an on-premises network, enabling companies to connect through the Internet. The goal of this study was to rank and prioritise the factors driving cloud ERP adoption by organisations and to identify the critical issues in terms of security, usability, and vendors that impact adoption of cloud ERP systems. The assessment of critical success factors (CSFs) in on-premises ERP adoption and implementation has been well documented; however, no previous research has been carried out on CSFs in cloud ERP adoption. Therefore, the contribution of this research is to provide research and practice with the identification and analysis of 16 CSFs through a systematic literature review, where 73 publications on cloud ERP adoption were assessed from a range of different conferences and journals, using inclusion and exclusion criteria. Drawing from the literature, we found security, usability, and vendors were the top three most widely cited critical issues for the adoption of cloud-based ERP; hence, the second contribution of this study was an integrative model constructed with 12 drivers based on the security, usability, and vendor characteristics that may have greater influence as the top critical issues in the adoption of cloud ERP systems. We also identified critical gaps in current research, such as the inconclusiveness of findings related to security critical issues, usability critical issues, and vendor critical issues, by highlighting the most important drivers influencing those issues in cloud ERP adoption and the lack of discussion on the nature of the criticality of those CSFs. This research will aid in the development of new strategies or the revision of existing strategies and polices aimed at effectively integrating cloud ERP into cloud computing infrastructure. It will also allow cloud ERP suppliers to determine organisations’ and business owners’ expectations and implement appropriate tactics. A better understanding of the CSFs will narrow the field of failure and assist practitioners and managers in increasing their chances of success.

Cloud ERP Systems for Small-and-Medium Enterprises

2018 ◽  
Vol 20 (4) ◽  
pp. 53-70 ◽  
Author(s):  
Amir Hassan Zadeh ◽  
Bolaji Akinsola Akinyemi ◽  
Anand Jeyaraj ◽  
Hamed M. Zolbanin
Keyword(s):  
Enterprise Resource Planning ◽  
Small And Medium Enterprises ◽  
Cost Effective ◽  
Resource Planning ◽  
Time Frame ◽  
Adoption Process ◽  
Erp Systems ◽  
Erp System ◽  
Adoption And Implementation ◽  
Medium Enterprises

Organizations recognize the need to adopt Enterprise Resource Planning (ERP) in order to become more competitive, efficient, and productive, although the adoption and implementation of an ERP system is a costly and risky endeavor. Recently, cloud computing has become a viable and competitive means by which most organizations, especially Small and Medium-sized Enterprises (SMEs), can implement an ERP system in a short time frame and cost-effective way. The authors' research examines the feasibility of cloud-based ERP systems for SMEs through a case study. The case emphasizes the potential of cloud-based ERP systems for SMEs as well as some of the challenges and peculiarities involved in their efforts to obtain an affordable and versatile ERP system. Their findings can potentially guide SMEs to make well-informed decisions throughout their cloud-based ERP adoption process.

Smoothing Short Duration Capacity Problems in Enterprise Resource Planning (ERP) Systems: An Algorithmic Approach

2014 ◽  
Vol 933 ◽  
pp. 860-868
Author(s):  
Muneam Zamzeer Al-Magsoosi
Keyword(s):  
Short Duration ◽  
Enterprise Resource Planning ◽  
Lot Sizing ◽  
Environmental Parameters ◽  
Resource Planning ◽  
Successful Implementation ◽  
Erp Systems ◽  
Lot Size ◽  
Erp System ◽  
Order Release

Successful implementation of ERP systems should take full advantage of the access to information, but not be constrained by many of the deficiencies associated with infinite capacity scheduling methodologies. In this paper an algorithm is developed which improves the performance of the ERP system. Lot sizing decisions based on capacity availability are used as an instrument to integrate more effectively capacity requirements planning (CRP) and Material Requirements Planning (MRP). MRP is a planning tool for a sub-set of manufacturing system specially in hierarchal multi-product, multi-period and multi-stage production planning and inventory control system. The Vehicle used for this integration is planned order release (POR) quantity. The algorithm requires minimal deviation from the MRP logic. In this sequential process MRP first issues the action notices and then the algorithm analyses the capacity situation in the work centers. The algorithm scans all planned order release quantities of lower level items in the action bucket before orders are released to the shop. For each item a delta value is computed identifying the degree orders are contributing to capacity problems. This delta is specific to each POR. The POR causing the highest overload and the one passing through the lowest utilized work centers are selected for a lot size decrease, respectively, an increase. After identifying the candidates, a series of checks analyses the suitability of the candidates for that change. The planned order release quantities of more items can be performed. Projected capacity profile after iteration will be updated and capacity requirements over a short duration are smoothed. The experiments are performed with MAP/3000 as a simulation model for this study. The developed algorithm is added to MAP/3000 as additional subroutines. The design of the experiments consists of a base test identifying the significance of different environmental parameters of MRP systems and a main test which performs a detailed evaluation. The results are evaluated using analysis of variance techniques. Most ERP systems built on the historical development of MRP and CRP systems, and the assumption of infinite capacity is affecting the performance of those systems badly. This paper is presenting an algorithm to smooth capacity problems by using the existed capacity.

Quantified benefit of implementing enterprise resource planning through process simulation

2004 ◽  
Vol 31 (2) ◽  
pp. 263-271 ◽  
Author(s):  
Sangyoub Lee ◽  
Ahsan Ullah Arif ◽  
Hyounseung Jang
Keyword(s):  
Enterprise Resource Planning ◽  
Management System ◽  
Construction Materials ◽  
Resource Planning ◽  
Application Integration ◽  
Erp Systems ◽  
Materials Management ◽  
Erp System ◽  
Internal Integration ◽  
Management Functions

The enterprise resource planning (ERP) system can integrate the major business management functions of the enterprise with a single common database to allow sharing of all information and achieve efficient communications between management functions. Based on the needs of running a construction enterprise, ERP shows potential applicability to the construction industry. This paper sought to quantify the benefits of ERP systems when applied to construction materials procurement. Specifically, this paper briefly described the business processes involved in construction materials procurement and illustrated how ERP systems could be implemented and the efficiency of the construction materials management system consequently enhanced. The transformation from a non-ERP system into an ERP system through application integration, internal integration, external integration, and automation were simulated. Results show that the individual task improvements of models can increase the productivity of the materials management cycle by up to 5.2%, 18.2%, 27.8%, 13.5%, and 79.2% through internal integration, external integration, application integration, automation, and ERP system, respectively, by automating most of the repeated transactions and reducing manpower required to perform the tasks.Key words: enterprise resource planning, materials management system, productivity, simulation.

Enterprise Resource Planning (ERP) Systems: An Empirical Analysis of Benefits

2004 ◽  
Vol 1 (1) ◽  
pp. 63-72 ◽  
Author(s):  
Daniel E. O'Leary
Keyword(s):  
Empirical Analysis ◽  
Enterprise Resource Planning ◽  
Resource Planning ◽  
Business Case ◽  
Data Repository ◽  
Erp Systems ◽  
Erp System ◽  
Intangible Benefits

This paper uses a database, derived from a data repository, in order to do an analysis of enterprise resource planning (ERP) system benefits. ERP benefits are important for a number of reasons, including establishing a match between what ERP systems benefits are—as compared to ERP expectations—setting a benchmark for other firms, and measuring those benefits. ERP benefits also are central to the business case for deciding whether a firm will invest in an ERP system. It is found that some benefits vary across industry, while others seem to be important to firms independent of industry. In particular, tangible benefits are largely industry-independent, while intangible benefits vary across industry. In addition, when compared to an earlier study by Deloitte Consulting, the results are statistically consistent with their findings, but find substantial additional intangible benefits.

Measuring Utilization of ERP Systems Usage in SMEs

2013 ◽  
pp. 22-34
Author(s):  
Hedman Jonas ◽  
Johansson Björn
Keyword(s):  
Enterprise Resource Planning ◽  
Model Building ◽  
Critical Mass ◽  
Resource Planning ◽  
Erp Systems ◽  
Planning Systems ◽  
Four Dimensions ◽  
Factors Influencing ◽  
Enterprise Resource Planning Systems ◽  
The Many

Since deployment of Enterprise Systems (ES) such as Enterprise Resource Planning systems (ERPs) within enterprises, both Large Enterprises (LEs) as well as Small and Medium-sized Enterprises (SMEs) have increased and continue to increase, making it increasingly desirable to measure the degree of utilization of ERP systems in enterprises. One reason for this interest is that no benefits are realized if the systems are not used; since ERPs are massive investments, they need to show benefits, or at least be able to measure the benefits. However, to be able to do so, there is a need to explain ERP systems utilization and the factors that influence ERP utilization. This chapter provides an explanation of factors influencing ERP systems utilization by testing a research model building on four dimensions: volume, breadth, diversity, and depth. The contributions of the research are: First, it provides support for the notion of diffusion found in the theory of network externalities where a critical mass is necessary to achieve benefits. This can be used to better understand failures in ERP projects. Second, the use of volume, breadth and depth provide insights for use as a construct and the need to treat it more rigorously. Third, the study contributes to our understanding of the many aspects of use of IT, such as ERPs, and potentially contributes to value and firm performance from ERP utilization.

Critical Success Factors in Enterprise Resource Planning Implementation

2020 ◽  
pp. 188-208
Author(s):  
Muhammad Shaikh ◽  
Libi Shen
Keyword(s):  
Enterprise Resource Planning ◽  
Success Factors ◽  
Resource Planning ◽  
Future Research ◽  
Critical Factors ◽  
It Professionals ◽  
Erp Systems ◽  
Erp System ◽  
Effective Implementation ◽  
Critical Success

Enterprise resource planning (ERP) systems are considered, by many, to be extremely solid, while giving organizations the ability to quickly capture and manage data across diverse sectors. Because the successful employment of an ERP system depends upon skillful implementation, specific factors contributing to successful ERP implementation are essential. What are the critical factors in the implementation of ERP system? How do company administrators and IT professionals perceive the critical successful factors for the effective implementation of the ERP? How are critical successful factors defined? How do IT professionals perceive the influence of critical factors on the effective implementation of ERP in a Phoenix company? In this chapter, the critical successful factors in the implementation of ERP systems will be explored. A single case study was conducted, and the interview data were gathered from 15 IT professionals in a Phoenix, Arizona company. Problems, solutions, recommendations, and future research direction will be presented.

Socio-Technical Change Perspective for ERP Implementation in Large Scale Organizations

2018 ◽  
pp. 2975-2987 ◽  
Author(s):  
Jessy Nair ◽  
D. Bhanusree Reddy ◽  
Anand A. Samuel
Keyword(s):  
Organizational Change ◽  
Enterprise Resource Planning ◽  
Large Scale ◽  
Resource Planning ◽  
Business Environment ◽  
Erp Systems ◽  
Erp Implementation ◽  
Firm Level ◽  
Erp System ◽  
Technical Theory

Organizations require to enhance their firm level resources to compete in turbulent business environment. Strategic application systems, such as an Enterprise Resource Planning (ERP) System is one such resource technology that centralizes the database of the organization to enable a seamless view of the organization. However, implementation of ERP systems in organizations has not been a success story for many. ERP systems implementation brings about large scale organizational change and hence it becomes essential for stakeholders to have a reference framework for planning for various dimensions of the organization. Hence this chapter applies a General Morphological Analysis(GMA) to identify the most suitable theory to analyse ERP implementation. Socio technical theory with Leavitt's diamond model was analysed as most appropriate since they are based on the of premises organizational change at firm level. Socio technical organizational change model will enable stakeholders to analyse resources required for core dimensions of the organization for ERP implementation.

An Analytical Model to Measure IS-Enabled Organizational Effectiveness

2013 ◽  
pp. 230-245
Author(s):  
Chun Meng Tang ◽  
Govindan Marthandan
Keyword(s):  
Organizational Effectiveness ◽  
Enterprise Resource Planning ◽  
Resource Planning ◽  
Business Managers ◽  
Erp Systems ◽  
Erp System ◽  
Abstraction Level ◽  
Confirmatory Factor ◽  
Order Construct ◽  
Returns On Investment

When business managers are considering whether to invest in an enterprise resource planning (ERP) system, they ask the question: “What are the returns on investment?” When the ERP system is implemented and in operation, business managers ask another question: “How successful is the system?” To answer these questions, clues can be found by examining organizational effectiveness improvements as a result of ERP system implementation. This paper suggests that being able to identify the dimensions of organizational effectiveness is enabled by ERP systems. Together with positive organizational effectiveness improvements, the business value of ERP systems can be demonstrated. To provide the evidence needed to support the notion, a confirmatory factor analysis (CFA) was conducted. Analyses reveal that the construct of IS-enabled organizational effectiveness can be modeled, at a higher-order abstraction level, as a third-order construct manifested by three second-order constructs and ten first-order constructs.

An Investigation of Enterprise Resource Planning Implementation in a Small Firm

2013 ◽  
pp. 57-80
Author(s):  
Magdy Abdel-Kader ◽  
Thu Phuong Nguyen
Keyword(s):  
Decision Making ◽  
Small Firm ◽  
Enterprise Resource Planning ◽  
Implementation Process ◽  
Resource Planning ◽  
Erp Systems ◽  
Erp Implementation ◽  
Erp System ◽  
Small Organizations ◽  
Selection Processes

Enterprise Resource Planning (ERP) systems have been recognized as complex and costly, which limited their implementation in large organizations. However, an increasing number of small organizations have recently gained interest in this system. This paper investigates the implementation process of ERP in a small firm. The investigation focused on two perspectives of ERP implementation: successes achieved and problems encountered. Despite many problems encountered in the firm, the ERP system still exists. This gives evidence that small organizations are more flexible and motivated to adapt to change and implement an ERP system. Most problems were encountered at early stages of implementation, which can be minimized if deliberate decision making of ERP implementation and proper selection processes were in place. Further, ERP is a good solution for small organizations if they are able to build a relevant in-house system.

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