Implementation of ERP system in SMEs

This thesis tries to propose a list of Critical Success Factors (CSFs) in the formof CSFs framework for Enterprise Resource Planning (ERP) systemimplementation at Small and Medium sized Enterprises (SMEs).The researchdescribe in this thesis tries to test them by going through the experience of ERPsystem implementation in SME called Hazelwood Sound & Vision Ltd (HSV).In a first instance, the author compared implementation models and suggestedmost appropriate model for HSV. Furthermore, literature search for criticalsuccess factors of ERP implementation has taken place. This led to a generalCSFs framework for ERP system implementation. At later stage, CSFs wereclassified into the phases of selected implementation model. This resulted inintegrated framework which later used for ERP system implementation calledSmart Office in HSV. Through this experience of implementing Smart Office inHSV, the author determined factors which were critical for the success of theERP implementation in HSV and compared them with CSFs found in literature.The study also examines, through the critical success factors, the impacts andissues in implementation related to these factors. Findings include: anincreased emphasis upon the determination of clear goals and objectives at theproject outset, and, importantly, vendor support added value in terms ofspecialist software knowledge and enhanced project team capability. Resultsshow that most of the success factors, found in the literature apply to HSV,although change management, and communication among departments, don‟tseems to be regarded as top CSFs for HSV.Implementation is an expensive investment, and difficult to implement, due toits complexity. It is hoped that knowledge and understanding of these factorswill assist SMEs in successfully implementing ERP and enable them to furtherimprove their systems in order to maximize returns. Furthermore, by identifyingrelevant CSFs for SMEs, managers can better prioritize implementation effortsand resources to maximize success of ERP implementations. One of theoutcomes of this research is implementation of Smart Office which fulfils thebusiness needs of the HSV.