Critical decisions for ERP integration: Small business issues

Abstract

Small enterprises are facing significant challenges to become suppliers of bigger customers due to the excessive costs associated with accessing a vast market of potential customers. It is essential for small businesses to adopt an ERP system to maintain control of their operations and to compete globally. An ERP implementation is expensive and risky for all businesses, but it is still more challenging for small businesses, which have particular characteristics. We identified from archived literature, key decisions necessary in selecting and implementing an ERP system. While these critical decisions are applicable to all types of businesses, the focus of this research was to recommend the best practices for each one of these key decisions for small businesses. We interviewed six small businesses to recommend best practices for the critical decisions: (1) project team structure, (2) implementation strategy, (3) database conversion strategy, (4) transition technique, (5) risk management strategy and (6) change management strategy. Our results indicate that these best practices greatly enhanced the success of an ERP implementation for small businesses. Further, we recommend studying the impact of ERP systems on the small business’ participation in supply chain management.