# ENTERPRISE RESOURCE PLANNING ( ERP ) IN SMALL AND MEDIUM SIZED ENTERPRISE (SMES):

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3 Hypothesis and Alternate Hypothesis in the ERP impacts after implementation will be as follows: Ho: The Company s revenue did not increase after implementing ERP system. H1: The Company s revenue increase after implementing ERP system. Therefore, each of the factors in the table will be a criterion of the research. HYPOTHESIS TESTING First, hypothesis, that is, impact of ERP on SMEs after implementation, including 25 question, indicates that ERP implementation has improved total companies situation in the areas mentioned. Hence, the null and alternate hypothesis is presented as follows: Ho : Mean <= 3 H1 :Mean >= 3 Figure :1 Areas under the standard normal probability distributions Null Hypothesis indicates that observed means is smaller than or equal to the hypothesis mean, in which case it means that null hypothesis is accepted and the impact is low to be considered, and alternate hypothesis indicates that observed mean is greater than the hypothetical mean, in which case the alternate hypothesis is accepted and the impact is important enough. The result gained from the sample group shows that the calculated observed value of t is (t=8.887) is greater than the critical point, that is In other words, it is similar than Since t value is positive, the critical value is above the scale area. Hence the null hypothesis at the confidence level of 0.95 and 0.99 is rejected. Therefore, we can say that implementation of ERP system has improved the factors mentioned in the variable A, that is, impacts after ERP implementation. The result of this test is presented in following table. Variable Descriptive indices Test Value = 3 Mean Std Deviation Std Error Mean t df Sig( 2- tailed) Mean Diff 95% Confi interval of the diff Upper Lower Mean A P a g e

4 RESEARCH FINDINGS: In the present study, both manufacturing as well as service firms are included. Out of 87 SMEs.60 of them are manufacturing firms, out of which 52 are medium sized and 8 are small sized firms. Others 27 SMEs are service companies out of which 20 are medium sized and only 7 are small sized companies. ERP implementation has made positive impacts on SMEs operations. Except Increased Market Share (IMS) all of the sub variable in this variable that is, the impacts of the ERP system on SMEs after implementation have mean values more than hypothetical mean, that is 3. SMEs under study do not believe that their market share has increased after ERP implementation. Yet, the SMEs implementation ERP system are fairly satisfied with the ERP systems and they believe that 24 variables out of 25 showed positive sign after ERP implementation. The Friedman Mean Rank of the 25 sub variables was calculated. The highest rank is given to the increased revenue, the second highest rank is given to the more familiarity with the equipment, the third rank is given to the business data storage/retrieval, the fourth rank is given to the better access to information and the fifth rank is given to the prompt and so on. The last rank is given to the increased market share hence, in Marathwada except increase market share, all of the positive changes were observed while implementing ERP system and the ERP system has had positive impacts on the SMEs. SUGGESTIONS The objective of this research is to identify the challenges organizations face while implementing ERP and to suggest strategies that can help them to overcome hurdles and to conduct their business more effectively than before with usage of ERP software packages. Therefore, few suggestions are offered based on the inferences drawn on the data analysis and interpretation. The effective implementation of ERP requires a systemic project management. Therefore, while going for ERP implementation it is advisable to constitute a project team consisting of members both from internal and external agencies. The knowledge transfer in ERP implementation is itself turn to be a barrier for effective implementation, unless it properly transferred. Therefore appropriate training for both who transfer and receive the knowledge is to be given. It is necessary to create an appropriate environment in the process and facilitate the smooth exchange of views and effective learning. Implementation of ERP depends on the involvement of every member in the organization, hence, the business activities that are essential for the implementation are considered in the study. There are ten such activities indicates in the study, out of which the most important ones are the interaction of the information system staff with the 4 P a g e

5 members in the other functional departments and the collection of information about the latest application and business needs of ERP. Therefore attempts must be made to bridge the gap between the implementing staff and others in the organization by creating awareness for the regular meeting, interaction and discussion. BIBLIOGRAPHY 1. Alexis Leon (2008), ERP Demystified, Second Edition 2008, Published by Tata McGraw-Hill Publishing Company Limited. 2. Ashim Raj Singla (2005), Impact of ERP systems on small and mid sized public sector enterprises, Journal of Theoretical and Applied Information Technology, pp Daniel E. O Leary (2002), Enterprise Resource Planning Systems System, Life cycle, Electronic Commerce & Risk Second Edition 2002, Published by Cambridge University Press. 4. Geogre L. Hodge (2002) Enterprise Resource Planning in textiles, Journal of Textile & apparel technology and management, Vol. 2, issue 3,pp Wen-Hsien Tsai, Shu-Ping Chen, Elliott T.Y. Hwang & Jui-Ling Hsu (2010), A Study of the Impact of Business Process on the ERP System Effectiveness, International Journal of Business and Management Vol. 5, No. 9; pp P a g e

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