Implementing ERP Solution Projects in SMBs Essay Example for Free

Implementing ERP Solution Projects in SMBs renderManaging and developing intellectual capital in many of todays organizations is becoming the greatest asset. contrasting firms of different sizes operating in different sectors are seeking a way of performing this get a line effectively and expeditiously. Among the different tools under considerations, many consider Enterprise Resource Planning (ERP) software packages meaty tools to effectively manage, retain and share friendship among stakeholders at tout ensemble echelons. ERP implementation causes changes to the receiving organization given its width and integrity.As a result challenges which results into additional risks and realization of new opportunities arise and proper action mustiness be taken to avert or reinforce the challenge for better results. ERP solution dust is as an opportunity for bloodline entities whether small or heroic to use software employments that are specifically knowing to upgrade the va rious business functions and attain the best business practices (Markus and Tanis, 2000, Marnewick and Labuschagne, 2005).Effective implementation of ERP software applications ensures that the major functional parts of a business enterprise are linked together in a common amalgamated software system (Sandoe et al, 2001, Rao 2000). This process makes it possible for the business activities to be instigated more efficiently and cooperation among the workers becomes more effective through the interactive information system. The process of implementing ERP in Small and Medium Businesses (SMBs) is harry with extra challenges and opportunities repayable to their specialty.The SMBs have limited financial and human resources, limited experience in project management and sometimes limited managerial competencies which determines the agility of their operations. Problem Statement Implementing ERP, projects require specialized application because they affect the receiving organization to di fferent degrees. In implementing an ERP, solution divisions and departments in spite of appearance an organization have to be co-ordinated into a single business platform, which affects the business model and the organization culture (Markus and Tanis, 2000).This makes the project risky and intricate. out-of-pocket to global business factors, economic expansion and IT revolution ERP solutions are becoming a requirement for business success. SMBs being key players in the economic activity are not left out in this competition. However, the process and success stories of ERP solutions in SMBs is lacking as past studies mainly focused on the large scale enterprises ERP solution process and application.In addition, the present trend of ERP solution project implementation by SMBs in the diverse business sectors and industries calls for the exploration of the opportunities and challenges of Implementing ERP Solution Projects in SMBs to pave way for the identification of slipway of avoi ding or minimizing losses in the implementation process (Soh et al, 2000). SMBs organization structures and organizational cultures are not all well defined. This coupled with the rigidity of the organization structure and culture present serious challenges to the implementation of ERP projects in SMBs.Additionally ERP projects are more successful in easy to change and agile organizations. However, unlike in large companies, the senior management team of the SMBs is normally part of the daily business operations and lacks in-depth knowledge and skills necessary to have organized long-term plans for the business and even the adoption of ERP solution projects. Similarly showtime capital base and lack of properly trained personnel have remained a major change of mind in the running of the functions of SMBs. This problem is compounded by lack of sufficient funds to sustain instruct and engage quality consultants in such trainings.According to Sandoe et al (2001) many SMBs lack dedica ted IT ply able to perform the risk management function exposing major business operations to unnecessary risks. Likewise, within internal functions of a SMB, organizational changes that would give room for adoption of technology are limited due to lack of unused resources. The impact of unsuccessful implementation of ERP solution to a SMB are said to be greater to the entire operations of the business enterprise while the success of wisely implemented ERP system will have a whole organizational positive impact (Rao 2000).