the benefits of enterprise systems for smes€¢ literature reviews of erp in smes • title,...
TRANSCRIPT
The Benefits of Enterprise Systems for SMEs
Presented by: Gwendolin Geier PhD candidate at the University of Central Lancashire April 2012
• ERP is basis for ES (ERP II)1
Enterprise systems (ES) are an advancement of ERP
1 C. Møller (2005) The Benefits of Enterprise Systems for SMEs 2
Integrated analytics & reporting
Supply chain management
Project management
Human resource
management
Financial management
Customer relationship
management
Supplier relationship
management
Compliance management
Business ByDesign is an IES for SMEs, requiring only limited resources
Flexibility Online learning
Limited time
Attractive pricing
Pre-configurations
Limited complexity
Limited users
The Benefits of Enterprise Systems for SMEs 3
Components2 of
SAP Business ByDesign compared to ‘traditional‘ enterprise systems
2 SAP AG (2012)
ERP
• 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*’
Scopus and Google scholar were used to find articles about benefits of ERP for SMEs
The Benefits of Enterprise Systems for SMEs 4
Only seven articles focus on ERP benefits in SMEs
The Benefits of Enterprise Systems for SMEs 5
Author Article
1 Marsh (2000)3 "The implementation of enterprise resource planning systems in small-medium manufacturing enterprises in South-East Queensland: a case study approach"
2 Mabert et al. (2003)4 "The impact of organization size on enterprise resource planning (ERP) implementations in the US manufacturing sector"
3 Sedera et al. (2003)5 "ERP success: does organization size matter?"
4 Reuther & Chattopadhyay (2004)6
"Critical factors for enterprise resources planning system selection and implementation projects within small to medium enterprises"
5 Federici (2009)7 "Factors influencing ERP outcomes in SMEs: A post-introduction 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"
Ranking of ERP benefits in SMEs9
The Benefits of Enterprise Systems for SMEs 6
Ranking Benefit Frequency*
1. Changing work pattern with shifted focus 38
2. Customer service improvement 37
3. Improved decision making and planning 36
4. Productivity improvement 35
5. Generating or sustaining competitiveness 33
6. Quality improvement 21
7. Cost and inventory reduction 21
8. Cycle time reduction 18
9. Performance improvement 12
*Number of companies, which think this benefit is most beneficial
9. P. Kale et al. (2010)
SMEs can gain the same benefits as large firms but have a different focus
Group Example Reachability by SMEs
Operational benefits Productivity improvement All benefits in these groups can be reached by SMEs Managerial benefits Performance improvement
Strategic benefits Business innovation Only some can be reached
IT infrastructure benefits Business flexibility Can only be reached to a very limited extent Organizational benefits Empowerment of workers
The Benefits of Enterprise Systems for SMEs 7
Benefits framework10 for ERP benefits achieved by SMEs
10 S. Shang and P. B. Seddon (2002 )
Cross table of benefits and ES components
ERP ERP in SMEs
SCM SCM in SMEs
CRM CRM in SMEs
SRM Total
Operational benefits 5 5 5 3 5 2 4 5
Managerial benefits 3 3 1 1 6 3 3 6
Strategic benefits 5 5 1 2 7 3 4 10
IT infrastructure benefits 3 1 1 0 3 0 2 3
Organizational benefits 6 1 0 0 3 0 1 6
The Benefits of Enterprise Systems for SMEs 8
Share of benefits that may be reached
Questions?
Contact: Gwendolin Geier, Marion Schulze, Yahaya Yusuf, Ahmed Musa
University of Central Lancashire PR1 2HE, Preston, UK
[email protected], [email protected], [email protected], [email protected]
web-page: http://www.uclan.ac.uk
The Benefits of Enterprise Systems for SMEs
The Benefits of Enterprise Systems for SMEs 9
References
1. C. Møller, “ERP II: a conceptual framework for next-generation enterprise systems?”, Journal of Enterprise Information Management, 18(4), pp. 483-497, 2005.
2. SAP AG, “SAP Business ByDesign - For Your Business”, [online], available: http://www.sap.com/uk/solutions/products/sap-bydesign/what-is-sap-business-bydesign/for-your-business/index.epx [accessed 02.03.2012], 2012.
3. A. Marsh, "The implementation of enterprise resource planning systems in small-medium manufacturing enterprises in South-East Queensland: a case study approach", Proceedings of the International Conference on Management of Innovation and Technology, 592-597 vol.2, 2000.
4. 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. 235-246, 2003.
5. D. Sedera, G. Gable and T. Chan, "ERP success: does organization size matter?", Proceedings of the 7th Pacific Asian Conference on Information Systems, 1075-1088, 2003.
The Benefits of Enterprise Systems for SMEs 10
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 851-855, 2004.
7. T. Federici, "Factors influencing ERP outcomes in SMEs: A post-introduction assessment", Journal of Enterprise Information Management, 22(1-2), pp. 81-98, 2009.
8. 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. 31 - 50, 2009.
9. P. Kale, S. Banwait and S. Laroiya, "Performance evaluation of ERP implementation in Indian SMEs", Journal of Manufacturing Technology Management, 21(6), pp. 758-780, 2010.
10. 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. 271-299, 2002.
The Benefits of Enterprise Systems for SMEs 11