Exploring the challenges in implementing enterprise resource planning systems in small and medium-sized enterprises

Abstract

The main objective of this study was to explore the challenges encountered when implementing an Enterprise Resource Planning (ERP) system in small medium-sized enterprises (SME). In recent years, ERP vendors have focused more on servicing the SME sector and for that reason, ERP has become a widely used business management system across SME organisations. Given the increase of ERP uptake, not all the implementations have been successful. Since ERP implementation affects all facets of business such as people, culture and processes, there are many challenges that a company encounters during the implementation of ERP in an SME. As a result, this can be a risk to the adoption of an ERP system by an SME because of the limited resource constraints. The study was conducted using a qualitative methodology, that followed an interpretive philosophy. The data was collected using semi-structured interviews and analysed inductively. The study found that all phases of ERP implementation are equally important. This includes the pre and post-implementation processes. The critical factors identified in the findings of the study are stakeholders’ inclusiveness, management support during ERP implementation, continuous change management across the project lifecycle, continuous improvement, cost, planning and project scoping and continuous communication, between the organisation and the implementation partner as important factors that are important to the success of ERP implementation in SMEs. The implementation of ERP in SMEs has not been thoroughly explored since it’s a growing field, specifically focusing on the SME sector.