Analysis of Success Factors of Introducing SAP System for ERP Implementation in Small and Midsize Enterprises in Taiwan

Introduction

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.