Risk Factors When Implementing ERP Systems in Small Companies

Implementation of enterprise resource planning (ERP) systems often aims to improve the companies’ processes in order to gain competitive advantage on the market. Especially, small companies need to integrate systems with suppliers and customers; hence, ERP systems often become a requirement. ERP sys...

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Autores principales:	Ann Svensson, Alexander Thoss
Formato:	article
Lenguaje:	EN
Publicado:	MDPI AG 2021
Materias:	ERP systems implementation risk factors small companies Information technology T58.5-58.64
Acceso en línea:	https://doaj.org/article/60d26a8c90a541df8b4bccc6b240c53e
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spelling	oai:doaj.org-article:60d26a8c90a541df8b4bccc6b240c53e2021-11-25T17:58:41ZRisk Factors When Implementing ERP Systems in Small Companies10.3390/info121104782078-2489https://doaj.org/article/60d26a8c90a541df8b4bccc6b240c53e2021-11-01T00:00:00Zhttps://www.mdpi.com/2078-2489/12/11/478https://doaj.org/toc/2078-2489Implementation of enterprise resource planning (ERP) systems often aims to improve the companies’ processes in order to gain competitive advantage on the market. Especially, small companies need to integrate systems with suppliers and customers; hence, ERP systems often become a requirement. ERP system implementation processes in small enterprises contain several risk factors. Research has concluded that ERP implementation projects fail to a relatively high degree. Small companies are found to be constrained by limited resources, limited IS (information systems) knowledge and lack of IT expertise in ERP implementation. There are relatively few empirical research studies on implementing ERP systems in small enterprises and there is a large gap in research that could guide managers of small companies. This paper is based on a case study of three small enterprises that are planning to implement ERP systems that support their business processes. The aim of the paper is to identify the risk factors that can arise when implementing ERP systems in small enterprises. The analysis shows that an ERP system is a good solution to avoid using many different, separate systems in parallel. However, the study shows that it is challenging to integrate all systems used by suppliers and customers. An ERP system can include all information in one system and all information can also easily be accessed within that system. However, the implementation could be a demanding process as it requires engagement from all involved people, especially the managers of the companies.Ann SvenssonAlexander ThossMDPI AGarticleERP systemsimplementationrisk factorssmall companiesInformation technologyT58.5-58.64ENInformation, Vol 12, Iss 478, p 478 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	ERP systems implementation risk factors small companies Information technology T58.5-58.64
spellingShingle	ERP systems implementation risk factors small companies Information technology T58.5-58.64 Ann Svensson Alexander Thoss Risk Factors When Implementing ERP Systems in Small Companies
description	Implementation of enterprise resource planning (ERP) systems often aims to improve the companies’ processes in order to gain competitive advantage on the market. Especially, small companies need to integrate systems with suppliers and customers; hence, ERP systems often become a requirement. ERP system implementation processes in small enterprises contain several risk factors. Research has concluded that ERP implementation projects fail to a relatively high degree. Small companies are found to be constrained by limited resources, limited IS (information systems) knowledge and lack of IT expertise in ERP implementation. There are relatively few empirical research studies on implementing ERP systems in small enterprises and there is a large gap in research that could guide managers of small companies. This paper is based on a case study of three small enterprises that are planning to implement ERP systems that support their business processes. The aim of the paper is to identify the risk factors that can arise when implementing ERP systems in small enterprises. The analysis shows that an ERP system is a good solution to avoid using many different, separate systems in parallel. However, the study shows that it is challenging to integrate all systems used by suppliers and customers. An ERP system can include all information in one system and all information can also easily be accessed within that system. However, the implementation could be a demanding process as it requires engagement from all involved people, especially the managers of the companies.
format	article
author	Ann Svensson Alexander Thoss
author_facet	Ann Svensson Alexander Thoss
author_sort	Ann Svensson
title	Risk Factors When Implementing ERP Systems in Small Companies
title_short	Risk Factors When Implementing ERP Systems in Small Companies
title_full	Risk Factors When Implementing ERP Systems in Small Companies
title_fullStr	Risk Factors When Implementing ERP Systems in Small Companies
title_full_unstemmed	Risk Factors When Implementing ERP Systems in Small Companies
title_sort	risk factors when implementing erp systems in small companies
publisher	MDPI AG
publishDate	2021
url	https://doaj.org/article/60d26a8c90a541df8b4bccc6b240c53e
work_keys_str_mv	AT annsvensson riskfactorswhenimplementingerpsystemsinsmallcompanies AT alexanderthoss riskfactorswhenimplementingerpsystemsinsmallcompanies
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Risk Factors When Implementing ERP Systems in Small Companies

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