The Benefits of Enterprise Systems for SMEs

Transcription

1 The Benefits of Enterprise Systems for SMEs Presented by: Gwendolin Geier PhD candidate at the University of Central Lancashire April 2012

2 Enterprise systems (ES) are an advancement of ERP ERP is basis for ES (ERP II) 1 1 C. Møller (2005) 2

3 Business ByDesign is an IES for SMEs, requiring only limited resources Integrated analytics & reporting Supply chain Project ERP Compliance Components 2 of Human resource Supplier relationship Customer relationship Financial SAP Business ByDesign compared to traditional enterprise systems Preconfigurations Limited complexity Flexibility Limited users Online learning Limited time Attractive pricing 2 SAP AG (2012) 3

4 Scopus and Google scholar were used to find articles about benefits of ERP for SMEs Literature reviews of ERP in SMEs Title, abstract, key words were searched Search terms: ERP OR Enterprise resource planning AND SME OR small and medium AND benefit* 4

5 Only seven articles focus on ERP benefits in SMEs Author Article 1 Marsh (2000) 3 in small-medium manufacturing enterprises in South-East "The implementation of enterprise resource planning systems Queensland: a case study approach" 2 Mabert et al. (2003) 4 planning (ERP) implementations in the US manufacturing "The impact of organization size on enterprise resource sector" 3 Sedera et al. (2003) 5 "ERP success: does organization size matter?" 4 "Critical factors for enterprise resources planning system Reuther & Chattopadhyay (2004) 6 selection and implementation projects within small to medium enterprises" 5 Federici (2009) 7 "Factors influencing ERP outcomes in SMEs: A postintroduction assessment" 6 Matharani & Viehland (2009) 8 "Business Benefits from Enterprise Systems Implementation in Small and Medium-sized Enterprises" 7 Kale et al. (2010) 9 "Performance evaluation of ERP implementation in Indian SMEs" 5

6 Ranking of ERP benefits in SMEs 9 Ranking Benefit Frequency* 1. Changing work pattern with shifted focus Customer service improvement Improved decision making and planning Productivity improvement Generating or sustaining competitiveness Quality improvement Cost and inventory reduction Cycle time reduction Performance improvement 12 *Number of companies, which think this benefit is most beneficial 9. P. Kale et al. (2010) 6

7 SMEs can gain the same benefits as large firms but have a different focus Benefits framework 10 for ERP benefits achieved by SMEs Group Example Reachability by SMEs Operational benefits Managerial benefits Productivity improvement Performance improvement All benefits in these groups can be reached by SMEs Strategic benefits Business innovation Only some can be reached IT infrastructure benefits Organizational benefits Business flexibility Empowerment of workers Can only be reached to a very limited extent 10 S. Shang and P. B. Seddon (2002 ) 7

8 Cross table of benefits and ES components Share of benefits that may be reached ERP ERP in SMEs SCM SCM in SMEs CRM CRM in SMEs SRM Operational benefits Managerial benefits Strategic benefits IT infrastructure benefits Organizational benefits Total 8

9 The Benefits of Enterprise Systems for SMEs Questions? Contact: Gwendolin Geier, Marion Schulze, Yahaya Yusuf, Ahmed Musa University of Central Lancashire PR1 2HE, Preston, UK web-page: 9

10 References 1. C. Møller, ERP II: a conceptual framework for next-generation enterprise systems?, Journal of Enterprise Information Management, 18(4), pp , SAP AG, SAP Business ByDesign - For Your Business, [online], available: for-your-business/index.epx [accessed ], A. Marsh, "The implementation of enterprise resource planning systems in smallmedium manufacturing enterprises in South-East Queensland: a case study approach", Proceedings of the International Conference on Management of Innovation and Technology, vol.2, V. A. Mabert, A. Soni and M. A. Venkataramanan, "The impact of organization size on enterprise resource planning (ERP) implementations in the US manufacturing sector", Omega, 31(3), pp , D. Sedera, G. Gable and T. Chan, "ERP success: does organization size matter?", Proceedings of the 7th Pacific Asian Conference on Information Systems, ,

11 References continued 6. D. Reuther and G. Chattopadhyay, "Critical factors for enterprise resources planning system selection and implementation projects within small to medium enterprises", Proceedings of the , T. Federici, "Factors influencing ERP outcomes in SMEs: A post-introduction assessment", Journal of Enterprise Information Management, 22(1-2), pp , S. Mathrani and D. Viehland, "Business Benefits from Enterprise Systems Implementation in Small and Medium-sized Enterprises", Australasian Journal of Information Systems, 16(1), pp , P. Kale, S. Banwait and S. Laroiya, "Performance evaluation of ERP implementation in Indian SMEs", Journal of Manufacturing Technology Management, 21(6), pp , S. Shang and P. B. Seddon, Assessing and managing the benefits of enterprise systems: the business manager's perspective, Information Systems Journal, 12(4), pp ,