The use of information systems has certainly brought positive effect to the businesses. Not only it has enhanced the data processing capabilities of businesses but also allow them to exploit the data for their own benefit by converting it to information. One of the most popular information systems is Enterprise Resource Planning (ERP) system. An ERP system enhances an organisation’s capability to utilize its resources by streamlining its business processes as well as information flows. However, the implementation of an ERP system is an expensive task, both in terms of finance and time; hence organisations take care in its selection in order to optimise the consumption of their resources on ERP implementation and maintenance. For SME, this consideration becomes much more necessary.
While non technical considerations are important, the technical specification and capabilities of ERP are equally important for ERP selection. This research establishes a framework for such technical considerations, which can be used by SMEs in their ERP selection process.
This research was conducted with the help of a survey questionnaire as a primary data collection tool, while qualitative analysis was used to extract findings from the data. It was found that many SMEs continue to use their legacy systems in parallel with the newly implemented ERP. Furthermore, one of the interesting facts that were recognised in this research was the solutions that SMEs were using to get rid of the rigidity that was introduced by ERP. It was also found that many SMEs had the potential to go international with their business. These findings were then used to put forward recommendations for the framework.
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