business intelligence during times of crisis adoption and usage of erp systems by smes

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Mohammad Fathi E-Mail: [email protected] Business Intelligence during times of crisis: Adoption and usage of ERP systems by SMEs 1

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Page 1: Business intelligence during times of crisis adoption and usage of ERP systems by SMEs

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Mohammad FathiE-Mail: [email protected]

Business Intelligence during times of crisis:

Adoption and usage of ERP systems by

SMEs

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Abstract• In this paper: ERP systems adoption and implementation by SMEs : Western

Macedonia.

• Special attention: critical factors affecting adoption of ERPs by SMEs and the business intelligence potential of implementing and using ERP during a period of crisis.

• Results: although SMEs recognize the advantages and benefits gained by the application of these systems, especially in managing and summarizing heterogenous data, still the business intelligence capabilities of ERP systems are underutilized, as managers do not take advantage of the knowledge and experience gained from using them.

• Concludes: proposals for further research on the implementation of ERP systems and the expansion of business intelligence usage by SMEs.

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• fully analyze and understand complex business situations

• simplify decision making processes

Introduction

concern the crucial factors affecting the successful adoption and implementation of ERP systems, the advantages derived from their usage, and the importance of the Business Intelligence capabilities that are embodied in an ERP system.

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2 .ERP and Business Intelligence in SMEs■ERP

■BI: Collect, Transform, and present structured data from multiple sources

■In this paper: managerial approach , perceptions of managers and ERP systems users , advantages and implementation factors

Relevant business information

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3 .Research Methodology■ Our main goals are to identify the main advantages that an SME can

derive from the implementation and usage of an ERP system, and the business intelligence capabilities offered by ERP systems.

■ 37 firms of the region of Western Macedonia: during April and May 2014 Managers and users of ERP systems were

personally interviewed

use of a structured questionnaire divided in 5 sections

All questions were presented using the Likert scale from 1 (totally disagree) to 5 (totally agree)

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Results■ SMEs have only recently began adopting ERP systems in their daily

operations.■ The firms in the sample: using ERP systems for an average of approximately

6 years with a standard deviation of 3.09 years■ The main advantages identified by the respondents relate to:

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Results■ the fact that during crisis periods, reducing cost is of

essence for SMEs.■ On the other hands the main disadvantages for adopting

ERP systems were cost of initial setup and support (36.80%) and most importantly the cost and time required for training the personnel to handle the new system (44.70%)

■ According to the results of the Table 1, crucial factors affecting the successful implementation of an ERP system ,The most important factors identified are:

support of the software provider

configuration/customization of the ERP systemAbility of communication and cooperation between all the involved departments of the firm

4.67

4.55

4.55

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Results■ The advantages of implementing and using ERP systems were

thoroughly examined by 14 questions in section B of the questionnaire.

integration of data and information from different departments

reliability of information assembled

saving time

Saving operational resources

Cultivating a culture of responsibility

4.68

4.43

4.40

3.60

3.68

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Results■ T4. Results of perceptions of managers concerning Business Intelligence

capabilities, of ERP systems.

aggregated results tools

importing/exporting dataeconomic management/accounting tools

4.68

4.48

4.42

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Conclusions■ The present research aimed at investigating the perceptions and

attitudes of firms using ERP systems and their Business Intelligence capability in the region of Western Macedonia in Greece.

• Reliable data collection and consolidation

• saving time by automating procedures(Kanellou & Spathis,

2013)

• cost reduction(Said et al., 2003) (Forslund, 2010)

(HassabElnaby et al., 2012)

Organizational and operational factors: Culture,Strategy,Leadership,Learning, quality management

implementation and integration of business intelligence systems

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ConclusionsThis

Study Used in implementation of ERP & BI by SMEs

Limitation of This Study

Small Sample Used

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Thanks

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