Abstract

Considering the problems and limitations of SMEs in the adoption of IT-enabled innovations in general and enterprise system software solutions in particular, this paper analyses the challenges and opportunities a medium-sized enterprise face in their decision to adopt Enterprise Resource Planning (ERP) systems, using a case study approach. While push by the technology/software vendors, influence of supply chain partners and competition are the key external factors influencing the adoption decision, the need for efficient management of information and processes, visibility and control are the key internal drivers, the study noted. Importantly, limited financial resources and challenges of evaluation and selection of the suitable software, though identified in the literature, did not seem to have any influence in their decision to adopt. Implementation of enterprise system in this case study facilitated enhanced visibility and control of information, improved quality of information for decision making and process performance. Successful adoption and implementation in a Medium-sized enterprise context is dependent upon factors such as complexity of business operations, a suitable fit between the software solution and the unique processes of the enterprise and the compelling need for standardised and integrated information and processes.

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