Sample Essay

It was thought that ERP systems were only meant for large and elite organisations and SMEs did not even consider implementing this system. When ERP vendors started campaigning for increasing awareness among SMEs, these companies started realising the benefits of ERP in a business. Although ERP have several advantages for businesses there are still many issues which have to be dealt with in order to implement ERP in SMEs effectively. Some of the problems in implementation of ERP in SMEs are described below.

Cost

A major aspect of ERP systems is the customisation of its modules according to customers’ requirements. This customisation enables ERP to adapt to differing business environments in different companies. The ERP vendor has to design the system according to the specific individual requirements of a customer. The cost of this customisation increases with the degree of changes required in each of the modules of the system. The ERP vendors have to offer lower prices to SMEs as small and medium sized companies are quite reluctant in implementing these systems. Although vendors have to offer lower prices but they also have to consider that the quality of the system in not compromised as low quality or any problems with the system may result in an adverse outcome and affect the company operations negatively. The vendor needs to keep a balance between cost and quality of the system as high cot would mean that the SME completely rejects the proposal.

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