Critical success factors of ERP implementation for small and medium-sized companies

Rana Basu

, Rita Adhikary Jana

Departmant

Industrial Engineering & Management Utech, India

Summary

To improve the productivity, quality and overall employee satisfaction concept Enterprise Resource Planning (ERP) is one of the solutions for small and medium enterprises. Small and medium sized companies can decide on the proper implementation of ERP business. Many companies have tried to adopt a commercial ERP software in the world. However, most commercial ERP packages for large companies are making it difficult to adopt a commercial ERP package designed with respect to medium and small enterprises. The Unified Modeling Language (UML) for small and medium-sized businesses, especially industrial companies, can afford to make business processes and acquire the global ERP system effectively.

Keywords: ERP conceptual UML model OOT, small and medium size

1. Introduction

recently, most companies use ERP to improve basic skills. American Production & Inventory Control Society defines ERP as “an accountability – based information for the identification and planning of company resources on the scale require the manufacture, ship and invoice for the customer’s order.” Gartner Group describes PRA as “a series of applications designed to make management function in balance and represents the next generation of enterprise system. “On the other hand, the ERP is a complete software solution for packed full integration of all business opportunities areas.The functional functional ERP systems developed has been further expanded to include various functions such as electronic commerce, supply chain management, customer relationship management, and thus covers all areas of the ERP functional activity worldwide has a management system in enterprises.

companies of all sizes and industries have tried to adopt the ERP system to improve business processes. But to reach all the companies, their goals through the implementation of ERP systems, commercial software ERP are very large and complicated. The implementation of an ERP system is hard work and not easy. This is a complex task. For example, almost half of large companies, the ERP system adopted in the past five years seen significant delays and budget overruns. The ERP system is a complex system. For small and medium-sized enterprises and the adoption of the ERP system is very risky because it will devote a lack of resources, particularly of skilled human resources, budget and time to the implementation of the ERP system.

2 Literature Review

2.1 Object-Oriented Technology (OOT)

Object-Oriented Technology was attention to overcoming the crisis in software. Object-Oriented Technology to develop IT systems company. Object-oriented modeling has proven to be excellent method for modeling business processes in an enterprise. Object-oriented modeling is a new area for the modeling and has generated great interest among the middle and small.

modeling a complex system is a vast and complicated task. Only one schema can not capture all the information needed to describe a complete system. To model a system, the system can be described by a number of different aspects, such as: functional, non-functional and organizational. Therefore, an ERP system in multiple views, where each view is a particular aspect of the system are described. In the UML, each view in a number of schemes that described focus on some aspect of the system.

UML is a modeling language industry standard adopted by the Object Management Group in 1977. UML is a modeling language for describing system models and real software on the concept of the object. UML consists of two tools: a notation and a meta-model. The notation is a set of syntax diagrams you to reflect and convey your analysis and design allows. The meta-model is the definition of the notation. UML is a rich and complex notation to describe the software. The prospects are in the research on systems and describe the various aspects of the needs of users.

2.2 Factors influencing the adoption of the ERP system

companies of all sizes show a critical need for coordination and control of trade, which in turn is connected to the complexity of the IT system. ERP system is the answer to manage complex information flows seen better.

companies, whether small, medium or large is one of the questions to increasingly coordinate and control the activities of the organization.

The market area (local, regional, national) work on the wider area of the market requires sophisticated management of legal and cultural issues. Membership in a group of companies, is the holding company or controlled for these variables seems to be strongly linked to the coordination of distributed business units in relation to the alignment of processes and procedures both between exploitation and companies controlled and monitored by the companies themselves

The level of diversification in terms of products, markets, technologies operating in different combinations of product markets is a further level of complexity. An increase in the number of companies out additional requirements for information processing unit companies are increasingly interdependent. Because of the need for greater coordination and control tend to specialize in complex organizations planning services, employ a large number of planners and therefore spend a significant amount of financial resources for strategic planning.

The degree of functional extension shows the number of activities internally, many companies prefer to outsource these activities are not directly linked to business strategies. The degree of expansion of the managed function refers to the number of strategic functions directly into the company that the amount does manage to information.

2.3 Implementation Strategies

There are two different ways to implement an ERP in the literature. These phases are named Progressive implementation and Big Bang approach. After the organizational structure, organizational complexity, economic issues, strategic partners, the restrictions of time and place of execution be chosen appropriately. The big bang approach required the simultaneous implementation of several modules of an ERP system, while a regulation is adopted to test design, develop and install various modules of the ERP.

2.4 System Information

An information system as a collection of subsystems by functional boundaries are defined and established organizational support detect and control decisions in an organization using information technology to transfer, store, retrieve, edit or view information using one or more business processes. An ERP system can be used as a system that integrates all the information an organization can see and be classified as information system.

2.5 ERP system

ERP system can be defined as a comprehensive solution, a software tries the whole range of business processes and integrate function to present an overview of the company from a single information architecture. By integrating business processes across the enterprise and the central database, ERP systems are different from earlier information in its ability to disseminate information in real time and increase organizational flexibility. to offer ERP-organization window of opportunities for strategic change. But because of the large integration, ERP implementation is a complex and interdependent high.

2.6 Organizational Culture

It may be in terms of how people think, are defined, which directly influences how they behave. Theoretically, we can say that it is a complex system of norms and values that formed over time. It is generally accepted that the social glue that holds all organizational member and the values and beliefs expressed by members of the operation. the culture of a company, so his values and beliefs of operations commander to exercise influence how people perceive events and how they behave.

Leadership 2.7

guide is the use of coercive measures will not affect direct and coordinate activities of the group members to achieve the defined goals. Centers on how leaders motivate followers, can be classified into two categories of leadership transformational leadership and transactional leadership. Transactional leadership is on the motion that the relationship between master and followers a form of transaction, with the assumption that people fundamentally instrumental and calculation are based. transactional leadership, people are sensitive to the needs of others who follow them in exchange for meeting these needs. Thus, transactional leadership is about the relationship between efforts to reward you for partisanship, based definition models desired behavior and keep the students the task throughout the process.

SUMMARY

Small and medium-sized companies do not have the same organizational structure, capital and human resources, including large companies can effort. Commercial ERP systems like Oracle, SAP has many modules tailored to the needs of large enterprises. There is a high risk of using a commercial ERP for small and medium enterprises. Therefore, SMEs need a different approach to ERP systems by large companies. assume instead of ERP software business small and medium enterprises can Unified Modeling Language (UML). The conceptual framework of ERP is an architectural approach for enterprise system. The model can afford the Company for small and medium-sized to make business processes and acquire the global ERP system effectively. If the functionality of the software application does not really fit the needs of business and business processes change to fit the software with minimal customization and change the software to adjust the process.

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ERP