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Effects of ERP on SMEs

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When Enterprise Resource Planning was first introduced, very few companies could actually afford it due its higher cost. In most cases, the only companies that could afford this technology were large organizations. But due technology changes, the cost involved with project would eventually be reduced, and allowing SMEs to implement it.

SMEs segment is very large that is why vendors are now serious to provide ERP system for SMEs. Due this reason ERP system developed at lower cost for companies who are looking to utilize it. Before SME market decides to utilize ERP, it may be a good idea to look at their larger counterparts to learn from them. Vendor should understand how to avoid failure while implementing ERP in SME segments. Many SME companies have to deal with tough economic issues as well as fierce competition from smaller countries. Because of this, these companies will be looking to make use of each and every form of technology they can get their hands on.

The results of studies connected on these companies that have utilized ERP system show a number of things. It should first be noted that organization that utilized technologies how surpassed their competitors by 25 percent. This means that Enterprise Resource Planning is a powerful system that can give companies an edge in the marketplace.

This also demonstrates that small and medium companies can achieve the same feats. A number of companies have failed when attempting to implement ERP, and much of this rests on their own mistakes rather than the mistake from ERP vendor or software.

A SME company must make strategic plans before implementing complete software. It is not a matter of just installing the software and letting it run. A number of things must be done to insure the software will work as it should be. The target is to integrate the many processes of the organization, and this technology should only be used by organizations that are willing to do this. They must work closely with the vendor to ensure everything is implemented in the approved manner. If this is not done, it will be very difficult for the organization to succeed. There are a number of organizations that fail to implement software for this exact reason. Failure of implementation can ruin the organization budget. In this case organization does not think to implement other sysyem easily.

Related Books
Enterprise Resource Planning Systems
Enterprise Resource Planning Systems, Life Cycle, Electronic Commerce, and Risk
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This book examines the pros and cons of software, explains how they work, and highlights their role at the heart of e-commerce. It contains several detailed case studies and will be an invaluable guide to managers and consultants.

 Read Related Articles

How to Get Successful Implementation
Faqs for Enterprise Resource Planning System
ERP Selection for SME - Microsoft Dynamics (NAV)/ Navision
ERP Software in India in SME Segment

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