ERP SYSTEMS GATHER GROUND IN THE SME SECTOR

Size: px

Start display at page:

Download "ERP SYSTEMS GATHER GROUND IN THE SME SECTOR"

Cornelius Anthony Edwards
8 years ago
Views:

1 ERP SYSTEMS GATHER GROUND IN THE SME SECTOR Böcskei Elvira, Vig Zoltán ÁVF-ITOK Miskolc, th August

2 About Our Research Based in ÁVF-ITOK In Collaboration of Budapest College of Management Budapest University of Technology and Economics University of Veszprém

3 DEFINITION OF SME (in force till the 1st of January, 2005.) (in force from the 1st of January, 2005.) Filter Micro- Small Medium Filter Small Medium Number of employees < 10 <50 < 250 Number of employees < 10 < 50 < 250 Annual Revenue or Total Assets < EUR 7 m < EUR 5 m < EUR 7 m < EUR 5 m < EUR 40 m < EUR 27 m Annual Revenue or Total Assets < EUR 2 m < EUR 2 m < EUR 10 m < EUR 10 m < EUR 50 m < EUR 43 m Independen cy The share of the State or Local Government, or a non-sme based on the capital paid or on voting powercan not exceed 25% neither one-byone, nor together. Independency The share of direct or indirect ownership of the State or Local Government based on the capital paid or on voting powercan not exceed 25% neither one-by-one, nor together.

< EUR 40 m < EUR 27 m Annual Revenue or Total Assets < EUR 2 m < EUR 2 m < EUR 10 m < EUR 10 m < EUR 50 m < EUR 43 m Independen cy The share of the State or Local Government, or a non-sme

4 Our hypothesis The level of the ERP penetration of the Hungarian SME-s are influenced for the followings: Financing capacity of the SME-s for introducing the system Efficiency of IT background (HW) IS level of the average users

Financing capacity of the SME-s for introducing the

5 Solution for financing problems: Funds in Hungary Felzárkózás az EU társadalmi-gazdasági fejlettségi szintjéhez Versenyképesebb gazdaság A humán erıforrások jobb kihasználása kihasználása Jobb környezet és infrastruktúra Kiegyensúlyozottabb regionális fejlıdés A termelıszektor versenyképességének javítása A foglalkoztatás növelése és az emberi erıforrások fejlesztése A közlekedési infra-struktúra fejlesztése, a környezet védelme A regionális és helyi potenciál erısítése GVOP HEFOP KIOP ROP AVOP 428,5 606,4 475,9 GVOP HEFOP KIOP ROP 440,3 750,4 AVOP In million Euros Source:

foglalkoztatás növelése és az emberi erıforrások fejlesztése A közlekedési infra-struktúra fejlesztése, a környezet védelme A regionális és helyi potenciál

6 GVOP in 2004 investment SME development R&D 645 IS 100 investment 645; 18% 100; 3% GVOP támogatási keret megoszlása prioritásonként év (millió euro) ; 31% 100 invest ment SME development R& D IS SME development R&D IS 1 669; 48% In million Forints ; percent Source::

év (millió euro) 645 1 076; 31% 100 invest ment 1 076 SME development R& D IS SME

7 Applience for funds In micro enterprises low number of staff and company size make it not sufficient to have a simple General Ledger, billing, order-management modules. Only a small part of the medium sized enterprises can gain advantage because it accounts for 50% of the project cost Mainly the capital-rich medium sized enterprises can exploit the possibilities of the program

Only a small part of the medium sized enterprises can gain advantage because it accounts for

8 Arised problems in the program There is no satisfactory prototype Users discourage the system Power users can not solve the problems arose Users can not use the system properly The reasons of the problems are based: IT development Managment malfunction The users IT knowledge and attitude.

can not use the system properly The reasons of the problems are based:

9 IS and Internet penetration in Hungary TV MOBIL TELEFON TELEFON INTERNET

INTERNET 300 200 100 0 1990 1991 1992 1993

10 Growth of ICT market in ICT market Telecom service ICT hardware IT service Software Western Europe Eastern Europe USA Japan Developing countries World

11 IS passive groups in Hungary 45% 40% 35% 30% 25% 20% 15% Lower educated people Elderly people Willagers 10% 5% 0% Buda pest town village Buda pest tow n village Buda pest town village Buda pest tow n village Budapest tow n village years years years years 60+ years Internet connection in household Medián, június N=1200

town village Buda pest tow n village Budapest tow n village 18-29 years 30-39 years

12 Actual results The slow growth of ERP systems in SME-s partly explainable with: Financing problems of the micro, and small enterprises The capital / size difference of Hungarian and average EU enterprises in case of gain advantages of the structural funds The low IT uses and IT culture in SME-s IS-passive employee groups, (weak ICT attitude, and low motivations)

and average EU enterprises in case of gain advantages of the structural funds The low IT

13 Future steps We have to study the followings ERP systems development trends ;in focus: User support SW Ergonomy and usability tests Scalable systems and modularity (for micro and small enterprises) Other financing possibilities We have to monitor the: Actual funds National and SME sector competitiveness Change of the personal internet penetration, ICT usage IS trends

enterprises) Other financing possibilities We have to monitor the: Actual funds National and

ERDF Grant Schemes for Enterprises. Schemes part-financed by European Regional Development Funds 2007-2013

ERDF Grant Schemes for Enterprises Schemes part-financed by European Regional Development Funds 2007-2013 Malta Enterprise Ministry of Finance, the Economy & Investment Operational Programme I Cohesion