Sample Essay

The implementation of ERP systems in large organisations has proven to be quite effective as individual components of an organisation are integrated to provide a simple yet comprehensive solution for business operations. This integration of several business functions into one system not only increases individual efficiency of these functions but also streamlines business functions to provide a better internal control mechanism. Venkatesh (2003 p.6) suggests that implementation of ERP system in SMEs is quite low as compared to large organisations due o lack of awareness. He argues that SMEs have very low awareness which is less than 35 percent as compared to large organisations which are more than 80 percent aware of benefits related to implementation of ERP systems. As it was highlighted in previous sections that large organisations have implemented ERP systems since a long time and these companies have become quite dependent on these ERP systems for carrying out business.

Since there is almost no room left for ERP implementation in large organisations and fierce competition, ERP vendors are now focusing on SMEs for development and implementation. Vendors of ERP solutions focus on SMEs to boost sales and generate higher profits as the SME market is still quite unexplored and in order to sell a higher number of ERP solutions to SMEs these vendors suggest that integration, connectivity and streamlining business functions is the key to success. ERP vendors also acknowledge the fact that the SME market is still unexplored up to a great extent and the main reason for this is the lack of awareness among SMEs regarding the effectiveness and efficiency of implementing ERP to business processes.

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