Enterprise Resource Planning (ERP) has become the core of successful information management and is also the foundation of corporate information systems for treating with everything related to corporate processes. The ERP implementation has been considered a complicated process because introducing process is involved with different potential conditions and factors so that they may affect the ultimate performance of ERP systems. The aim of this study is to analyze success factors of introducing SAP system for ERP implementation in small and midsized firms. The authors first found out past critical factors affecting the ERP implementation by means of literature review in order to understand results of past studies. Next, the authors widely collected the critical success factors from previous studies and sifted out representative factors to make up a questionnaire. Through the pilot study and questionnaire revision, the authors identified the content of the questionnaire and started interviewing job. When interviewing activities were finished, they began to study and analyze the data. Survey results indicate that three of the most important factors affecting ERP implementation are “top management support and commitment”, “project manager’s competence” and “communication and coordination effectiveness”.
In the early era, information systems were simply used to manage production planning and raw material in the factory. With diversity of products in enterprises, they needed powerful information systems to manage them and compete in the complex market in order to survive. An integrated information system, Enterprise Resource Planning (ERP), was gradually developed and extended many functions, such as supply chain management, customer relationship management and warehouse function. With the competition of globalization, both e-business and Internet function were also increased to ERP systems. This make ERP become a function-oriented and modular information system.
The ERP implementation has been considered a complicated process because introducing process is involved with different potential conditions and factors so that they may affects the ultimate performance of ERP systems (Soja, 2006). Besides, ERP systems own the characteristics of real time and integration. By integrating the work process of different department, organizations can establish standardization of processes so that different database can be mutually used in the same information system in time. In the past decade, ERP was usually introduced by large-scale enterprises due to the business requirement and implementation costs. In recent years, more and more small and midsize enterprises express the need for introducing ERP systems in order to keep competitiveness in their industry. Moreover, they also expect to realize any potential crucial factors in the ERP implementation. However, success factors usually involve local culture, business environment and organizational itself. Therefore, in the report, we will study the success factors affecting ERP implementation in small and medsized enterprises (SMEs) and the result will help enterprises to create positive conditions and avoid negative effects.
Aim and Objectives
The aim of this study is to analyze success factors of introducing SAP system for ERP implementation in small and midsize firms. To achieve this aim, it is necessary to fulfil the following objectives:
To understand what factors are considered determinants for the success of implementation before ERP systems are introduced into SMEs.
To understand how those determinant factors impact on an ERP implementation When ERP systems have introduced into SMEs.
To understand what factors are valued by enterprises and consultants in the implementing period when ERP systems are introduced into SMEs.
The contributions of this report include: (1) This report investigates the success factors of ERP implementation and the result can provide companies intending to introduce ERP and consults with implementing reference. (2) The result can help organizations to understand the importance of implementing factors in different period and to advance the successful implementation.