SlideShare a Scribd company logo
International Journal of Research in Advent Technology, Vol.2, No.7, July 2014 
E-ISSN: 2321-9637 
22 
ERP in Indian SMEs: Issues, challenges and Future 
P. D. Deshmukh 1, V.R. Kalamkar 2, G. T. Thampi 3 
Department of Mechanical Engineering, SPCE, Andheri, Mumbai University 1, 
Department of Mechanical Engineering, VNIT, Nagpur University 2, 
Department of Mechanical Engineering, TSCE, Bandra, Mumbai 3, 
Email: pddeshmukh7@gmail.com1 ,vilas.kalamkar@gmail.com 2, gtthampi@gmail.com 2 
Abstract-: In knowledge based economy, Indian enterprises have challenges to provide high quality product at 
low cost, to remain more competitive in world. Small and Medium-Size Enterprises represent the spinal cord of 
Indian economy. To improve productivity and overall business performance, Enterprise Resource Planning 
(ERP) is one of the solutions for the Small and Medium Enterprises (SMEs) in order to face the global 
challenges. According to SME chamber of India, there are about 26.1 million MSME (micro small and medium 
enterprises) in India, contributing about 17% to India’s GDP and 45% to aggregate industrial output. But the 
adoption of Information Technology and IT based ERP system is quite unsatisfactory. 
This paper discusses SMES contribution in economic growth by evaluating new information function provided 
by ERP system which acts as drivers to increase SMEs’ efficiency and productivity in the current global 
economy in terms of benefits. Author also shades light on issues, Challenges of ERP implementation In Indian 
SMES. In this paper author tried to answer the research question that Is ERP system act as driver for growth of 
SMEs in India? Cost effective and flexible architecture and integrated solutions which were initially targeted for 
large businesses can also bring value for Indian SMEs. 
Index Terms- ERP in Indian SMEs, Issues in Indian SMES, Challenges for ERP Implementation in Indian 
Context. 
1. INTRODUCTION 
According to the Government of India’s Micro, Small 
and Medium Enterprises Development (MSMED) 
Act, 2006, A small enterprise is an enterprise where 
the investment in plant and machinery is more than 
Rs. 25 lakh but does not exceed Rs. 5 crore; and 
A medium enterprise is an enterprise where the 
investment in plant and machinery is more than Rs.5 
crore but does not exceed Rs.10 crore, which engaged 
in the manufacture or production, processing or 
preservation of goods. The Enterprises engaged in 
providing services are defined as A small enterprise 
where the investment in equipment is more than Rs.10 
lakh but does not exceed Rs. 2 crore; and A medium 
enterprise is an enterprise where the investment in 
equipment is more than Rs. 2 crore but does not 
exceed Rs. 5 crore. [21]. Indian SMEs have 
limitations of investment in plant or equipments. But 
SMEs are the engine of economic development, they 
constitute the majority of business enterprises, and 
they are vital for employment generation and poverty 
alleviation. Many developing-country SMEs have 
inserted themselves into vertical production networks 
as component suppliers to big multinational 
companies, increasing their contribution in export 
receipts. SMEs, as major employers especially in rural 
areas, make valuable and necessary contributions to 
poverty alleviation by increasing income levels and 
creating jobs. In both developed and developing 
economies, the organic growth of small enterprises is 
a vital source of wealth creation.[33] 
SMEs are the driver of economic growth and 
innovation. The total number of SMEs in the 
economy depends on the rate of SME creation and 
rate of SME destruction. Profitable market increases 
the total number of SMEs in the country, and increase 
in SMES also increases job creation and income per 
capita. New market opportunities will be created 
when people will increase their consumption. 
Contrary to multinational corporations, the growth of 
SMEs directly benefits the country because most 
SMEs are domestic firms. When the number of SMEs 
increase as a result this their knowledge of their 
product and industry is raised which drives the 
innovation in product and process; leads to economic 
growth. It also helps them form a competitive 
advantage to generate more profits. [34] 
Importance of SMEs Indian Economy 
Small and medium enterprises (SMEs) play a key role 
in the growth of the Indian economy by contributing 
to industrial output or generating employment, the 
SMEs have always made remarkable progress 
achieved across traditional and emerging sectors such 
as manufacturing, pharmaceuticals, textile, food 
processing, and retail, garments, IT and several other 
service sectors. SMEs generates millions of jobs, 
especially for low-skills level, low educated people. 
[ec] Currently, India’s SME sector is a flexible
International Journal of Research in Advent Technology, Vol.2, No.7, July 2014 
E-ISSN: 2321-9637 
23 
dynamic, and productive entity, as it employ nearly 81 
million people in 36 million units across the country 
and contribute almost 45 percent to the total industrial 
output. In recent times, SMEs have been fulfilling to 
Indian Market as well as international markets and 
have emerged as leaders even during the period of 
recession by restoring jobs and business activity. It 
acts as a prime medium for regional development and 
the economical development of weaker sections of 
society.[35] At the time of removal of quantitative 
restrictions under WTO in 2001, it was predicted that 
the sector would fall down under the attack of global 
products. But this sector quickly adapted and 
restructured itself with technology, accepted norms of 
quality and competitiveness. It is expanded faster than 
the rest of the industrial economy. [10] Its 
contribution to the Indian GDP, which as per the 
Economic Survey of India for the year 2012-13 is 7.9 
percent Due to their contribution to the Indian GDP, 
which as per the Economic Survey of India for the 
year 2012-13 is 7.9 percent, they can be aptly called 
the backbone of the Indian economy, called as the 
backbone of the Indian economy [35]. 
2. GROWTH AND CHALLENGES IN THE 
SMES SECTOR IN INDIA 
The number of small-scale units has increased from 
an estimated 48.8 million units in the year 2013-14 to 
over 46.7 million in the year 2012. Due to Great 
Potential of SMEs, it has performed exceedingly well 
and created wide industrial growth opportunities and 
diversification. SMEs sector has made significant 
contributions towards employment generation and 
rural industrialization. SMEs sector in India creates 
largest employment opportunities for the Indian 
populace, next only to agriculture. . Statistics from 
Ministry of Micro, Small & Medium Enterprises also 
revealed the growth of SMEs industry in India It has 
been estimated that 100,000 rupees of investment in 
fixed assets in the SMEs sector generates employment 
for four persons[39] [38]. Small and Medium 
Enterprises (SMEs) play a vital role for the growth of 
Indian economy by contributing 45% of 
industrial output, 40% of exports, create 1.3 million 
jobs every year and produce more than 8000 quality 
products for the Indian and international markets. 
There are approximately 30 million MSME Units in 
India and 12 million persons are expected to join the 
workforce in the next 3 years. SME’s Contribution 
towards GDP in 2011 was 17% which is expected to 
increase to 22% by 2012. SMEs are the source of 
several innovations in manufacturing and service 
sectors, which serves as the major link in the supply 
chain to corporate and the PSUs. Promoting SMEs is 
nothing but promoting the development in the rural 
areas of India. [37] 
It is necessary to support the SMEs, for empowerment 
of optimum utilization of resources, for achieving the 
success; as SMEs are growth engine of Indian 
economy. The SMEs need to be educated and 
informed of the latest developments taking place 
globally and helped to acquire skills necessary to rate 
with the global growth. [37] 
Despite its commendable contribution to the Nation's 
economy, SMEs are facing a number of problems and 
several challenges. At the same time it has limitations 
of SMEs, like Low Capital base, Concentration of 
functions in one / two persons; Inadequate exposure 
to international environment, Inability to face impact 
of WTO regime, Inadequate contribution towards R & 
D, Lack of professionalism.[22] 
Challenges for Indian SMEs 
· Inadequate infrastructure, finance, non-availability 
of highly skilled labor at affordable 
costs [40] 
· Absence of adequate knowledge, technology, low 
production capacity, ineffective marketing 
strategy, constraints on modernization & 
expansions, identification of new markets, 
follow-up with various government agencies to 
resolve problems[22] 
· Becoming More Competitive in the global market 
by cost-cutting, quality enhancement, 
productivity improvement and efficient 
management of supply chains, greater public and 
private investment in infrastructure with limited 
investment and machinery.[36] SME Sector does 
not get the required support from the concerned 
Banks, Financial Institutions, Government 
Departments and Corporate, to become more 
competitive in the National and International 
Markets.[36] 
· Enhancing Access to Global Markets by greater 
policy coordination within the Indian 
Government for a coherent approach to emerging 
trade policy issues, an institutional partnership 
between the private sector and the Government in 
devising specific marketing strategies.[36] 
· Safeguarding Intellectual Property by effectively 
administering copyright and patent legislation, 
encouraging more innovations and patenting 
them.[36] 
· Promoting Small-Scale and Cottage Industries, 
and Regional Cluster Development by removing 
policy impediments; financial support; 
technology, skills and quality upgrading; market 
support and improving links between small and 
large firms. [36] 
· Increasing Exports[36]
International Journal of Research in Advent Technology, Vol.2, No.7, July 2014 
E-ISSN: 2321-9637 
24 
· Enhanced competition from China and a few low 
cost centers of production [22]. 
Indian SMEs have been facing a tough time due to 
globalization and liberalization in trade, coupled with 
WTO regime, but the SMEs who have strong 
technological base, international business outlook, 
competitive spirit and willingness to restructure them, 
better withstanding o f the present challenges can 
make shining make their own contribution to the 
Indian economy [22]. 
The government has a vital role to play creating 
awareness about ICT applications amongst Indian 
firms, above all in micro, small, and medium 
enterprises (MSMEs) [41].While SMEs are slowly 
adopting IT tools in their operations to become more 
competitive, but the penetration of IT in SMEs is 
much below than its potential. Currently IT can be 
used in areas like production monitoring and control, 
quality monitoring and control, etc. can streamline the 
business process and SMEs are slowly awakened 
about this [38]. 
3. ERP AND SMEs IN INDIA. 
Enterprise resource planning (ERP) systems 
integrate and automate internal and external 
management information across an entire 
organization, embracing manufacturing, 
finance/accounting, sales and service, customer 
relationship management, etc. The purpose of ERP is 
to facilitate the flow of information between all 
business functions inside the boundaries of the 
organization and manage the connections to outside 
stakeholders. Enterprise systems (or Enterprise 
Resource Planning) are an emerging technology that 
belongs to the scientific discipline of information 
systems [18] [20]. 
This is a software package which should include the 
following features: 
· An integrated system which functions in real time 
not requiring you to depend on periodic updates. 
· It should have a common database. 
· Each module should have the same look and feel 
to uncomplicated things. 
· Each department should be able to access the 
system without having to consult the IT 
department. 
ERP system provides advantages like provides 
visibility of all the important processes across various 
departments of an organization; automatic and 
coherent work; unified and single reporting system to 
analyze the statistics/ numbers/ status etc in real time, 
across all the functions / departments; provides 
Business Intelligence functionalities; Advanced e-commerce 
integration to handle web based order 
tracking/ processing; provides secure as centralized 
security policies for all the transactions enable better/ 
faster collaboration across all the departments; 
possible to integrate other systems (like bar-code 
reader, for example) to the ERP system through an 
API (Application Programming Interface) [7]. 
But there are some disadvantages of ERP system like 
cost of ERP Software, planning, customization, 
configuration, testing, implementation, and further up 
gradations ; time required for implementation(ERP 
deployments take 1-3 years to get completed and fully 
functional); difficult to calculate return on 
Investment; Migration of existing data to the new 
ERP systems [7]. 
There are different Issues and Challenges of ERP 
implementation In Indian SME’s like lack of 
Awareness, perception that ERP is meant only for 
large firms mainly owing to the high costs of 
acquisition, Earlier Implementation failures , 
customization increases the cost; less of capital than 
their larger counterparts, Change management, 
Limited resource of in-house IT team. Some of the 
factors to be considered before starting an ERP 
system implementation are: 
• Infrastructure resource planning 
• Education about ERP 
• Human resource planning 
• Top management commitment 
• Training facilities 
• Right people for the implementation 
These factors help organizations to understand their 
level of preparedness for an ERP implementation [7]. 
Before the implementation organizations must 
evaluate organizational objectives and requirements, 
Planning, customer profile, global support base as 
well as the financial credentials [7]. 
Small to medium-sized enterprises (SMEs) can find 
difficult to put the power of technology solutions into 
the work for their businesses as there are some ERP 
implementation challenges and business challenges 
like global competition, evolving operational 
processes, complex regulations and product 
diversification. Indian SMES can convert these 
challenges into opportunities with a powerful IT 
solution. ERP system can provide SMEs with the 
launch pad for long-term growth, competitiveness and 
success [44]. Small to medium-sized enterprises 
(SMEs) often have sophisticated and industry-specific 
business processes and IT needs, but must cater these 
needs with relatively small budgets and IT staffs. 
4. LITERATURE REVIEW 
In the late 90’s, researchers started to show interest in 
Enterprise Resource Planning. Davenport (1998) 
discussed the functionality of an ERP system and the 
complexity of implementation. Van Everdingen et al. 
(2000) surveyed more than 2000 European companies 
in order to study adoption of ERP in different 
industries. Much of the early research focused on 
implementation issues and the use of “Best Practices” 
in processes. Nau and Lau (2001) identified certain 
factors by analyzing selective articles for successful
International Journal of Research in Advent Technology, Vol.2, No.7, July 2014 
E-ISSN: 2321-9637 
25 
implementation of ERP and Muscatello (2002) 
surveyed the essential factors in ERP implementation. 
Al-Mashari (2002) presents a research agenda for 
ERP and identified a huge gap in the ERP literature. 
Ashim.et.al[2004], studied the design and 
implementation risks factors for ERP systems in 
Indian organizations. Buonanno.et.al[2005], analyzed 
of the empirical data and composed that that business 
complexity is a weak predictor of ERP adoption. 
Wu.et.al [2006] used Hochstrasser model is used to 
analyze the uncertainties of tangible benefits in the 
process of ERP project investment. Jafari et al. (2006) 
carried a research for Malaysian SMEs and identified 
ten important issues for the success of ERP 
implementation. Woo (2007) carried out research for 
major Chinese organizations and reported six critical 
issues for the successful implementation of ERP 
systems. Upadhyay and Dan (2008), carried out 
research study for Indian SME organizations where 
the researchers empirically assessed and, on the basis 
of responses received from the respondents, identified 
certain issues that actually would lead to the success 
of ERP implementation. Kale.et.al(2009), presented 
that in India, SMEs are the backbone of the economy 
and are today faced with global competition. 
Parijat.et.al(2009), targeted to the SME’s which 
already completed the process of adopting an ERP 
system to bring out the underlying factors which can 
prove decisive for success. Upadhyay and Dan (2009) 
performed a research for Indian SME's and revealed 
that certain critical factors could lead to positive 
implementation of ERP. Päivi(2009) discussed that 
the principal reason for failure has often been 
associated with the poor management of ERP 
implementation projects. Noudoostbeni et al. [2009] 
assessed important success factors and failure factors 
in Malaysian SME companies. Garg(2010), explored 
and validated the existing literature empirically to find 
out the critical failure factors that lead to the failure of 
ERP in context to Indian retail organizations. 
Ganesh.et.al(2010), argues that Indian consultants 
often fail in recognizing the technology, vendor, 
employee, project etc related influence to the ERP 
implementation. Poonam(2010), explored and 
validated the existing literature empirically to find out 
the critical success factors. Above literature study 
clearly point out that ERP system will help SMEs to 
achieve growth challenges and remain competitive in 
global economy. 
4. ERP SYSTEM AS GROWTH 
MULTIPLIER FOR SMEs IN INDIA. 
A vast majority of small and medium scale 
organizations have some significant constraints in 
their resources. While Indian SMEs overlook the 
benefits of integrating ERP systems stating that such 
ERP software are beyond their budgets as the reason, 
but there is no doubt that the implementation of ERP 
software can improve the company’s performance as 
well. The awareness of implementing enterprise 
business application (i.e. ERP) among SMEs is less 
than 35%, as compared to over 80% for large 
organizations as per survey conducted by 
International Data Corporation (IDC). The critical 
influencing business drivers for SME segment will be 
to increase the overall business efficiency, to increase 
the capital and labor productivity and to reduce the 
fixed and variable cost. Research and survey by 
leading IT vendors clearly points out that the need for 
technology solutions is not only confined to Tier 1 
cities in India but also business organizations 
operating from Tier II and Tier III cities also need 
ERP solutions as well. As all ERP vendors are 
focusing on this market, the Indian SME segment will 
have many alternatives to choose any one out of such 
high competitive price [44]. 
SME Challenges ERP Software Benefits 
Reconciling disparate, 
A common and capable 
incompatible and/or 
platform for all core 
limited function legacy 
business operations 
systems from organic 
growth or acquisitions 
Rationalizing 
distributed, inconsistent 
and/or out-of-date 
corporate data 
Support for “single-version- 
of-the-truth” 
data that can be shared 
across departments, and 
with key partners and 
customers 
Meeting regulatory 
requirements, including 
those specific to vertical 
industry sectors and 
different countries 
Provides integral 
regulatory compliance 
and reporting 
functionality 
Inadequate IT systems 
constrain growth 
A multifunction and 
scalable platform that 
can keep pace with, and 
facilitate, company 
growth 
Inconsistent and/or 
inefficient business 
processes, which are 
labor intensive, time 
consuming and error 
prone 
Standardization and 
automation of core 
processes; templates for 
best practices; tracking 
of key performance 
indicators 
Global expansion, 
which requires currency 
conversions, financial 
consolidations and roll-ups 
Built-in support to track 
exchange rates, convert 
currencies and 
consolidate financials 
The need to interface 
easily with other IT 
software and systems 
Support for standard 
interfaces to most 
commonly used software 
and systems, including 
mobile 
The need to diversify 
with expanded product 
Tools to track product 
SKU inventory,
International Journal of Research in Advent Technology, Vol.2, No.7, July 2014 
E-ISSN: 2321-9637 
26 
or service portfolios shipment logistics, 
service delivery, etc. 
Source: SMB group 2011 
As above table shows that can fulfill SMEs challenges 
and act as growth multiplier as it helpful for global 
expansion and sustain in competition. ERP software 
provides many benefits like improves the efficiency 
of business process, cut down in labor cost, 
information automation, timeliness delivery of 
information. As ERP usage reduces manpower, time, 
error, land and improves business process 
transactions, efficiency, and quality of work, 
innovative in process. So ERP can act as growth 
multiplier for SMEs. 
But still there are some reasons for not using ERP 
system. While many new SMEs start each year, nearly 
50% end to exist in the first 3 years of business itself, 
and only 40% survive beyond 10 years. Though it is 
assumed that all SMEs desire growth, majority of the 
firms do not consider on of long-term business 
strategy but focus only on survival. When the 
business begins to fail as a result of not keeping track 
of the changing market scenario, then only SMEs 
think about change only [41]. 
According to Gattiker et. al [2005], ERP 
implementation failure rate is from 40%. According to 
Gordon [2006], the main factors that can be held 
responsible for failure of ERP system are-poor 
planning or poor management, change in business 
goals during project, lack of business management 
support, issue of concern is the cost feasibility of 
system integration, training and user licenses, system 
utilization, etc.[45][46]. 
ERP client server has been implemented by many 
large media companies despite the fact that this 
application is quite expensive. Most of small and 
medium-sized companies never think to implement 
the software in their business systems due to high cost 
of proprietary software and time required for the 
implementation. The proprietary software vendors of 
ERP include maintenance fees, initial cost, training 
cost and hardware cost. But there are different low 
cost options/approaches are available in market. 
5. LOW COST ERP SOLUTIONS 
There are different solutions available in market to get 
low cost system which is helpful for running business 
processes of SMEs efficiently and improves the 
productivity of business by reducing inputs and 
improving output of business process. 
Open source ERP 
Open Source ERP does not require a license or 
implementation cost like proprietary software. It can 
only download from the internet, installed in the 
system and run your business. Open Source ERP 
provides most of the function of ERP system to cater 
the needs of small and medium-sized companies 
Download and installation process lasted only a few 
minutes and for you immediately, of course ERP 
software has advantages and disadvantages as other 
software.[42] 
Advantages 
· Since maintenance fees are not included in the 
initial cost and there are no licensing costs, open 
source systems are essentially free to own and 
use. The total cost of ownership may also be less 
than proprietary software since maintenance fees 
are usually lower. 
· The source code can be modified and customized 
to meet your organization’s business needs and 
there are typically a wide range of integration 
formats.[42] 
Disadvantages 
· The basic, free version of open source software 
will probably not fully meet your organization’s 
expectations so it will inevitably end up investing 
in maintenance and support. The more your 
organization customizes the software, the more 
money it will likely end up spending. 
· Since open source may provide fewer active 
customers than top-tier commercial ERP 
providers like SAP.[42] 
Cloud based ERP 
Cloud based solution provides you the best practices 
and tools that were available to only larger enterprises 
until now and that too at affordable price. It consist all 
the features of best Enterprise level ERP that are 
required by SMEs and is delivered using cloud route. 
Like proprietary ERP, Cloud based ERP software 
provides all the functions like automated business 
processes, information management with added 
intelligence, ensuring improved productivity and 
accelerated growth but it also frees up your team from 
traditional admin activities, and focus on core 
business processes. On Demand ERP captures tasks 
across Apps and makes them available on your 
dashboard with notifications for each task. The cloud 
ERP Applications are seamlessly integrated to work 
from a single login on a single database. Small & 
Medium enterprises (SMEs) including Start ups 
across India, Australia, USA and Europe are 
Accelerating Growth by leveraging Cloud ERP. It 
provides advantages like minimum investment, 
Minimized technical staff involvement, increase 
scalability, Fewer Responsibilities, lower initial cost, 
Roles based Dashboard, Just Configure and Get 
Started with On Demand SaaS ERP on the Cloud 
,Zero IT infrastructure cost and maintenance with 
SaaS ERP run and managed by cloud, and Reports 
and Analytics in the cloud built into the ERP system 
[43] 
Traditional On-site ERP is being replaced by online 
ERP accessed through a web browser. The Online 
ERP is also known as web based ERP, hosted ERP,
International Journal of Research in Advent Technology, Vol.2, No.7, July 2014 
E-ISSN: 2321-9637 
27 
cloud ERP, SaaS ERP, or on-demand ERP. Small & 
Medium Companies as well as Start ups are moving 
ERP cloud applications to manage all their Business 
Processes. Web-Based ERP reduces total Cost of 
ownership as compare to on site ERP. It provides 
rapid implementation with customization and free up-gradation. 
But in terms of features and scalability it 
provides limited functionality and scalability.[43] 
6. CONCLUSION 
SMEs area unit plays important role in economic 
development, as they represent the majority of 
business enterprises, and that they area unit very 
important for employment generation and financial 
condition alleviation.SME sector in India has been 
growing speedily over the past few years, however the 
ICT based Practices like ERP adoption of among 
SME sector has been stunning slow. This will be 
attributed to varied provide aspect and demand aspect 
constraints that are touching the ERP adoption among 
the SMEs. The advantages of ERP area unit clearly 
visible as corporations having ERP systems and 
processes have managed sturdy profits and 
efficiencies. SMEs area unit currently realizing that 
their growth will solely be sustained if they will 
properly manage the degree of their business through 
a lot of involvement with ICT. As SME corporations 
modify to implement ERP system with all its power, 
it's imperative that the highest leadership maintains 
associate perspective of continuing commitment and 
properly order the implementation of ERP initiatives 
across the organization. Clear communication and 
Planning can go an extended means in making a 
flourishing scheme of IT among a SME. SAP 
Business All-in-One solutions provide growing SMEs 
an inexpensive and rapid-to-implement way to gain 
“professional-grade” ERP capabilities and SAP’s 
best-practice business processes. Social, mobile and 
cloud technology is new wave in future SMEs. These 
technologies not solely empowers worker however 
conjointly give access to up-to-date data among a 
moment with value effectiveness. The versatile design 
and integrated solutions with customization were first 
targeted for big businesses can even bring worth for 
Indian SMEs. 
REFERENCES 
[1] Päivi[2009], Päivi Iskanius , “Risk Management 
in ERP Project in the Context of SMEs”, 
Engineering Letters, ISSN: 1816-0948, Vol. 17, 
No. 4, 2009. 
[2] Parijat.et.al[2009], Parijat Upadhyay, Pranab K 
Dan, “ERP in Indian SME’s: A Post 
Implementation Study of the Underlying Critical 
Success Factors”, International Journal of 
Management Innovation System, ISSN 1943- 
1384, Vol. 1, No. 2, 2009. 
[3] Ashim.et.al[2004], Ashim raj single, D.p.goyal,” 
Managing risk factors in design and 
implementation of erp systems (an empirical 
investigation of the Indian industry)”, IAMOT 
Conference Archive, IAMOT, 2004. 
[4] Garg[2010], Poonam Garg, “Critical Failure 
Factors for Enterprise Resource Planning 
Implementations in Indian Retail Organizations: 
An Exploratory Study”, Journal of Information 
Technology Impact, Vol. 10, No. 1, pp. 35-44, 
2010. 
[5] Wu.et.al [2006], F. Wu, C. Liu, H. Z. Li, K. Gao 
and J. Tian, “The Benefits Evaluation of ERP 
Project Investment Based on Real Options” , 
IEEE International Conference on Systems, Man, 
and Cybernetics, 1-4244-0099-6, pp 4078 - 4083 
, 2006. 
[6] Buonanno.et.al[2005], G. Buonanno, P. Faverio, 
F. Pigni, A. Ravarini, D. Sciuto and M. 
Tagliavini, “Factors affecting ERP system 
adoption A comparative analysis between SMEs 
and large companies ” , Journal of Enterprise 
Information Management, ISSN: 1741-0398, Vol. 
18, No. 4, pp.384 – 426, 2005. 
[7] Kale.et.al[2009], P. T. Kale, S. S. Banwait, S. C. 
Laroiya, “Enterprise Resource Planning 
Implementation in Indian SMEs: Issues and 
Challenges”, Business Process Management 
Journal, pp 242-248, 2009. 
[8] A report on Prime Minister’s Task Force on 
Macro ,Small and Medium Scale enterprises, 
Government of India, 2010. 
[9] Amin Hakim, Hamid Hakim, “A practical model 
on controlling the ERP implementation risks”, 
Information System (ELSEVIER), Vol. 35, No. 
2, pp 204-214, 2010. 
[10]Saini S, Nigam S., Misra S.C, ” Success Factors 
for Implementing ERP in SMEs in India: A 
Conceptual Model”, Information Management 
and Engineering (ICIME), IEEE, 978-1-4244- 
5263-7, pp 165 – 169, 2010. 
[11]Vinod Kumar, Bharat Maheshwari, Uma Kumar, 
“An investigation of critical management issues 
in ERP implementation: empirical evidence from 
Canadian organizations” The International 
Journal of Technological Innovation, 
Entrepreneurship and Technology Management, 
Technovation,Elsevier, pp 793-807, 2010. 
[12] http://www.erp-india.org/erp_software_india.htm
International Journal of Research in Advent Technology, Vol.2, No.7, July 2014 
E-ISSN: 2321-9637 
28 
[13]Eugenia Papaioanno,Christos Sarmaniotis, Costas 
Assimakopoulos,Christos K. Georgiadis, “A 
successful deployment of an ERP system: A case 
study of a small Greek company”, 8th ICESAL, 
2011. 
[14]Ashish Kr. Dixit, Om Prakash, “A Study of 
Issues Affecting ERP Implementation In SMES” 
, International Refereed Research Journal, ISSN 
2231-4172,Vol.– II, Issue –2, 2011. 
[15]Ceyda Gungor Sen, Hayri Baraclı, Selcuk Sen b, 
Huseyin Baslıgil, ” An integrated decision 
support system dealing with qualitative and 
quantitative objectives for enterprise software 
selection”, Expert systems with applications, 
ELSEVIER, Vol. 36, No 3, Part 1, pp 5272-5283, 
2009. 
[16]Vinod kumar Garg, N.K. Venkitakrishan, “ ERP 
concepts and practice”, second edition, PHI, 
2009. 
[17]Asim Raj Singla, “ERP”, Cengage Learning, 
2008. 
[18]Alexis leon, “ERP”, TMH, 2009. 
[19]ERP definition, http://www.erpdefinition.net/ 
accessed on 11-Jan-2010 
[20]Advantages-disadvantages-of-erp-enterprise-resource- 
planning-system, 
http://www.excitingip.com/2010, 
accessed on Jan-2010 
[21]Small_and_medium_enterprises, 
http://en.wikipedia.org/wiki, accessed on Jan- 
2010. 
[22]Small and medium enterprises (SMES) in india, 
http://www.dsir.gov.in/ reports/mitcon- 
/chap2.pdf, accessed on Dec-2009. 
[23]Al-Mashari M. (2002). “Enterprise resource 
planning (ERP) systems: a research agenda”, 
Industrial Management & Data Systems, 102, 
165-170 
[24] Jafari[2006], Jafari, S. M., Osman, M. R., Yusuf, 
R. M., & Tang, S. H., (2006).” ERP systems 
implementation in Malaysia: The importance of 
critical success factors”, Engineering and 
Technology, 3, 125-131. 
[25]Muscatello, J. R. (2002). “An Exploratory Study 
of the Implementation of Enterprise Resource 
Planning (ERP). Dissertation, Cleveland State 
University” 
[26]Upadhyay, P. & Dan, P.K. (2008). An explorative 
study to identify the Critical Success Factors for 
ERP implementation in Indian small and medium 
scale enterprises, IEEE, 295-299. 
[27]Woo, H. S., (2007). “Critical success factors for 
implementing ERP: the case of a Chinese 
electronics manufacturer”, Journal of 
Manufacturing Technology Management, 18(4), 
431 -442 
[28] http://manufacturers-blognotions.tradepub.com/ 
free/w_epic48/prgm.cgi 
[29] http://manufacturers-blognotions. 
tradepub.com/free-offer/5-ways-erp-can- 
help-you-implement-lean/ 
w_epic48?sr=adv&_t=adv:Epicor%20Softw 
are%20Corporation 
[30] http://manufacturers-blognotions. 
tradepub.com/category/manufacturin 
g/1210 
[31] http://manufacturers-blognotions. 
tradepub.com/?pt=adv&page=Epicor 
%20Software%20Corporation 
[32] http://manufacturers-blognotions. 
tradepub.com/free/w_epic48/ 
[33]Report, “How to access Trade finance: A guide 
for exporting SMEs”, International Trade Centre 
2009 
[34]Vadim Kotelnikov,“Small and Medium 
Enterprises and ICT”, Asia-Pacific Development 
Information Programme 
[35] http://entrepreneurindia.in/people/specials/smes-and- 
budget-2013/18704/ /Indian SME 
Clusters.htm 
[36]The challenges of introducing ERP in SMEs 
Roland Berger News Media Roland 
Berger.htm 
[37] http://smeworld.org/story/features/role-of-smes-sector- 
in-the-emerging-indian-economy.php 
Future of Indian Entrepreneurship 
[38]Needs and Challenges of SMEs in India 
[39]Bikky Khosla, ICT and the Indian SMEby, 
Infocom Network Ltd -Tradeindia.com 
[40]M.P.Thapliyal1, Pooja Vashishta2,”ERP 
Software Implementation in Indian Small and 
Medium Enterprises”, International Journal of 
Emerging Trends & Technology in Computer 
Science (IJETTCS), Volume 1, Issue 2, August 
2012 
[41]Cloud ERP for SMEs SaaS ERP Software On 
Demand workXmate India.htm 
[42] http://eastvantage.blogspot.in/2012/04/advantage 
s-and-disadvantages-of-using. 
html#.U6G9q6iSxgk 
[43] http://www.workxmate.com/saas-software/cloud-crm. 
html 
[44] Report,”From Aspiration to Achievement: 
ERP for Growing SMEs, SMB group, Oct. 
2011 
[45]Gattiker et. al [2005], ,Gattiker, T.F.,Goodhue, 
D.L.,”What Happens after ERP 
Implementation: Understanding the Impact of 
Interdependence and Differentiation on Plant-level 
Outcomes”, MIS Quarterly, 29, 3, 559- 
585, 2005 
[46]Gordon [2006], Gordon A ., “ERP 
Applications: Myth and Misconceptions”, 
EzineArticles,(www.ezinearticles.com), 
Dec14, 2010

More Related Content

What's hot

Introduction to msme sector
Introduction to msme sectorIntroduction to msme sector
Introduction to msme sector
Ashima Thakur
 
Role of msme in indian economic development
Role of msme in indian economic developmentRole of msme in indian economic development
Role of msme in indian economic development
Kushal Kumar
 
MSME Sector - Growth, Challenges & Opportunities
MSME Sector - Growth, Challenges & Opportunities  MSME Sector - Growth, Challenges & Opportunities
MSME Sector - Growth, Challenges & Opportunities
Resurgent India
 
Sourajit Aiyer - GSCGI WealthGram, Switzerland - What India’s leading Prime M...
Sourajit Aiyer - GSCGI WealthGram, Switzerland - What India’s leading Prime M...Sourajit Aiyer - GSCGI WealthGram, Switzerland - What India’s leading Prime M...
Sourajit Aiyer - GSCGI WealthGram, Switzerland - What India’s leading Prime M...
South Asia Fast Track
 
Current scenario
Current scenarioCurrent scenario
Current scenario
kongara
 
MSME Schemes
MSME SchemesMSME Schemes
MSME Schemes
Resurgent India
 
Msme strategic-action-plan
Msme strategic-action-planMsme strategic-action-plan
Msme strategic-action-plan
jabeenabegum01
 
Grant thornton-ficci-report (2)
Grant thornton-ficci-report (2)Grant thornton-ficci-report (2)
Grant thornton-ficci-report (2)
Rajeevi Nayak Nayak
 
Performance analysis of msme with respect to indian
Performance analysis of msme with respect to indianPerformance analysis of msme with respect to indian
Performance analysis of msme with respect to indian
DiPesh KaneRiya
 
D038027040
D038027040D038027040
D038027040
inventionjournals
 
Micro, small and medium enterprises in india
Micro, small and medium enterprises in indiaMicro, small and medium enterprises in india
Micro, small and medium enterprises in india
Raveena Kaushal
 
Report working group_5yearplan-2012-17
Report working group_5yearplan-2012-17Report working group_5yearplan-2012-17
Report working group_5yearplan-2012-17
jabeenabegum01
 
Msme ppt
Msme pptMsme ppt
Globalisation
GlobalisationGlobalisation
Globalisation
KushagraAgrawal46
 
Foreign Direct Investment
Foreign Direct InvestmentForeign Direct Investment
Foreign Direct Investment
Prabir Chatterjee
 
Made in India
Made in India Made in India
Made in India
YashikaGupta50
 
Make in india
Make in indiaMake in india
Make in india
anvithaphutane
 
International Journal of Business and Management Invention (IJBMI)
International Journal of Business and Management Invention (IJBMI)International Journal of Business and Management Invention (IJBMI)
International Journal of Business and Management Invention (IJBMI)
inventionjournals
 

What's hot (18)

Introduction to msme sector
Introduction to msme sectorIntroduction to msme sector
Introduction to msme sector
 
Role of msme in indian economic development
Role of msme in indian economic developmentRole of msme in indian economic development
Role of msme in indian economic development
 
MSME Sector - Growth, Challenges & Opportunities
MSME Sector - Growth, Challenges & Opportunities  MSME Sector - Growth, Challenges & Opportunities
MSME Sector - Growth, Challenges & Opportunities
 
Sourajit Aiyer - GSCGI WealthGram, Switzerland - What India’s leading Prime M...
Sourajit Aiyer - GSCGI WealthGram, Switzerland - What India’s leading Prime M...Sourajit Aiyer - GSCGI WealthGram, Switzerland - What India’s leading Prime M...
Sourajit Aiyer - GSCGI WealthGram, Switzerland - What India’s leading Prime M...
 
Current scenario
Current scenarioCurrent scenario
Current scenario
 
MSME Schemes
MSME SchemesMSME Schemes
MSME Schemes
 
Msme strategic-action-plan
Msme strategic-action-planMsme strategic-action-plan
Msme strategic-action-plan
 
Grant thornton-ficci-report (2)
Grant thornton-ficci-report (2)Grant thornton-ficci-report (2)
Grant thornton-ficci-report (2)
 
Performance analysis of msme with respect to indian
Performance analysis of msme with respect to indianPerformance analysis of msme with respect to indian
Performance analysis of msme with respect to indian
 
D038027040
D038027040D038027040
D038027040
 
Micro, small and medium enterprises in india
Micro, small and medium enterprises in indiaMicro, small and medium enterprises in india
Micro, small and medium enterprises in india
 
Report working group_5yearplan-2012-17
Report working group_5yearplan-2012-17Report working group_5yearplan-2012-17
Report working group_5yearplan-2012-17
 
Msme ppt
Msme pptMsme ppt
Msme ppt
 
Globalisation
GlobalisationGlobalisation
Globalisation
 
Foreign Direct Investment
Foreign Direct InvestmentForeign Direct Investment
Foreign Direct Investment
 
Made in India
Made in India Made in India
Made in India
 
Make in india
Make in indiaMake in india
Make in india
 
International Journal of Business and Management Invention (IJBMI)
International Journal of Business and Management Invention (IJBMI)International Journal of Business and Management Invention (IJBMI)
International Journal of Business and Management Invention (IJBMI)
 

Viewers also liked

3d work slide show
3d work slide show3d work slide show
3d work slide show
Libby Lynch
 
Paper id 23201432
Paper id 23201432Paper id 23201432
Paper id 23201432
IJRAT
 
Paper id 24201422
Paper id 24201422Paper id 24201422
Paper id 24201422
IJRAT
 
Paper id 252014125
Paper id 252014125Paper id 252014125
Paper id 252014125
IJRAT
 
Paper id 25201476
Paper id 25201476Paper id 25201476
Paper id 25201476
IJRAT
 
Paper id 24201448
Paper id 24201448Paper id 24201448
Paper id 24201448
IJRAT
 
Paper id 252014144
Paper id 252014144Paper id 252014144
Paper id 252014144
IJRAT
 
Paper id 24201474
Paper id 24201474Paper id 24201474
Paper id 24201474
IJRAT
 
Paper id 2520141231
Paper id 2520141231Paper id 2520141231
Paper id 2520141231
IJRAT
 
Paper id 21201447
Paper id 21201447Paper id 21201447
Paper id 21201447
IJRAT
 
Paper id 26201493
Paper id 26201493Paper id 26201493
Paper id 26201493
IJRAT
 
Paper id 28201413
Paper id 28201413Paper id 28201413
Paper id 28201413
IJRAT
 
Paper id 252014107
Paper id 252014107Paper id 252014107
Paper id 252014107
IJRAT
 
Paper id 2320144
Paper id 2320144Paper id 2320144
Paper id 2320144
IJRAT
 
Paper id 21201429
Paper id 21201429Paper id 21201429
Paper id 21201429
IJRAT
 
Paper id 25201494
Paper id 25201494Paper id 25201494
Paper id 25201494
IJRAT
 
Paper id 25201478
Paper id 25201478Paper id 25201478
Paper id 25201478
IJRAT
 
Paper id 25201466
Paper id 25201466Paper id 25201466
Paper id 25201466
IJRAT
 
Paper id 2920141
Paper id 2920141Paper id 2920141
Paper id 2920141
IJRAT
 
Paper id 252014114
Paper id 252014114Paper id 252014114
Paper id 252014114
IJRAT
 

Viewers also liked (20)

3d work slide show
3d work slide show3d work slide show
3d work slide show
 
Paper id 23201432
Paper id 23201432Paper id 23201432
Paper id 23201432
 
Paper id 24201422
Paper id 24201422Paper id 24201422
Paper id 24201422
 
Paper id 252014125
Paper id 252014125Paper id 252014125
Paper id 252014125
 
Paper id 25201476
Paper id 25201476Paper id 25201476
Paper id 25201476
 
Paper id 24201448
Paper id 24201448Paper id 24201448
Paper id 24201448
 
Paper id 252014144
Paper id 252014144Paper id 252014144
Paper id 252014144
 
Paper id 24201474
Paper id 24201474Paper id 24201474
Paper id 24201474
 
Paper id 2520141231
Paper id 2520141231Paper id 2520141231
Paper id 2520141231
 
Paper id 21201447
Paper id 21201447Paper id 21201447
Paper id 21201447
 
Paper id 26201493
Paper id 26201493Paper id 26201493
Paper id 26201493
 
Paper id 28201413
Paper id 28201413Paper id 28201413
Paper id 28201413
 
Paper id 252014107
Paper id 252014107Paper id 252014107
Paper id 252014107
 
Paper id 2320144
Paper id 2320144Paper id 2320144
Paper id 2320144
 
Paper id 21201429
Paper id 21201429Paper id 21201429
Paper id 21201429
 
Paper id 25201494
Paper id 25201494Paper id 25201494
Paper id 25201494
 
Paper id 25201478
Paper id 25201478Paper id 25201478
Paper id 25201478
 
Paper id 25201466
Paper id 25201466Paper id 25201466
Paper id 25201466
 
Paper id 2920141
Paper id 2920141Paper id 2920141
Paper id 2920141
 
Paper id 252014114
Paper id 252014114Paper id 252014114
Paper id 252014114
 

Similar to Paper id 27201411

msme in employment generation
msme in employment generationmsme in employment generation
msme in employment generation
BASANT46
 
MSMEs role in driving the make in india initiative
MSMEs role in driving the make in india initiativeMSMEs role in driving the make in india initiative
MSMEs role in driving the make in india initiative
Seilan Anbu
 
Role of sme’s in economic growth of india, SME ,MSME
Role of sme’s in economic growth of india, SME ,MSMERole of sme’s in economic growth of india, SME ,MSME
Role of sme’s in economic growth of india, SME ,MSME
VIJAY KAMBOJ
 
28 srividhya
28 srividhya28 srividhya
28 srividhya
chelliah paramasivan
 
ROLE-OF-SME-IN-ECONOMIC-GROWTH-OF-INDIA.pptx
ROLE-OF-SME-IN-ECONOMIC-GROWTH-OF-INDIA.pptxROLE-OF-SME-IN-ECONOMIC-GROWTH-OF-INDIA.pptx
ROLE-OF-SME-IN-ECONOMIC-GROWTH-OF-INDIA.pptx
ssuser027e92
 
Growth and Future Prospects of MSME in India
Growth and Future Prospects of MSME in IndiaGrowth and Future Prospects of MSME in India
Growth and Future Prospects of MSME in India
IJAEMSJORNAL
 
Empowering MSMEs through financing and linkages
Empowering MSMEs through financing and linkagesEmpowering MSMEs through financing and linkages
Empowering MSMEs through financing and linkages
Misbah Hussain
 
ROLE-OF-SME-IN-ECONOMIC-GROWTH-OF-INDIA (1).pptx
ROLE-OF-SME-IN-ECONOMIC-GROWTH-OF-INDIA (1).pptxROLE-OF-SME-IN-ECONOMIC-GROWTH-OF-INDIA (1).pptx
ROLE-OF-SME-IN-ECONOMIC-GROWTH-OF-INDIA (1).pptx
ssuser027e92
 
A study on problems and prospects of smes
A study on problems and prospects of smesA study on problems and prospects of smes
A study on problems and prospects of smes
Ram Kumar
 
article_on_msme.pdf
article_on_msme.pdfarticle_on_msme.pdf
article_on_msme.pdf
gitanjali2082
 
Growth of Micro, Small and Medium Enterprises in Manipur
Growth of Micro, Small and Medium Enterprises in ManipurGrowth of Micro, Small and Medium Enterprises in Manipur
Growth of Micro, Small and Medium Enterprises in Manipur
inventionjournals
 
MSm Es and their role in ensuring sustainable economic development in india c...
MSm Es and their role in ensuring sustainable economic development in india c...MSm Es and their role in ensuring sustainable economic development in india c...
MSm Es and their role in ensuring sustainable economic development in india c...
prj_publication
 
MSME
MSMEMSME
msme act.pptx
msme act.pptxmsme act.pptx
msme act.pptx
sapna moodautia
 
Msme indian eco
Msme indian ecoMsme indian eco
Msme indian eco
KowsarAli2
 
An Overview of MSME Sector in India with Special Reference to the State of Ut...
An Overview of MSME Sector in India with Special Reference to the State of Ut...An Overview of MSME Sector in India with Special Reference to the State of Ut...
An Overview of MSME Sector in India with Special Reference to the State of Ut...
ijtsrd
 
The Prospects and Problems of MSMEs sector in India an Analytical study
	The Prospects and Problems of MSMEs sector in India an Analytical study	The Prospects and Problems of MSMEs sector in India an Analytical study
The Prospects and Problems of MSMEs sector in India an Analytical study
inventionjournals
 
39 progress and performance of micro, small and medium enterprises in india
39 progress and performance of micro, small and medium enterprises in india39 progress and performance of micro, small and medium enterprises in india
39 progress and performance of micro, small and medium enterprises in india
chelliah paramasivan
 
Progress and performance of micro, small and medium enterprises in india
Progress and performance of micro, small and medium enterprises in indiaProgress and performance of micro, small and medium enterprises in india
Progress and performance of micro, small and medium enterprises in india
RAVICHANDIRANG
 
Paramasivan1
Paramasivan1Paramasivan1
Paramasivan1
chelliah paramasivan
 

Similar to Paper id 27201411 (20)

msme in employment generation
msme in employment generationmsme in employment generation
msme in employment generation
 
MSMEs role in driving the make in india initiative
MSMEs role in driving the make in india initiativeMSMEs role in driving the make in india initiative
MSMEs role in driving the make in india initiative
 
Role of sme’s in economic growth of india, SME ,MSME
Role of sme’s in economic growth of india, SME ,MSMERole of sme’s in economic growth of india, SME ,MSME
Role of sme’s in economic growth of india, SME ,MSME
 
28 srividhya
28 srividhya28 srividhya
28 srividhya
 
ROLE-OF-SME-IN-ECONOMIC-GROWTH-OF-INDIA.pptx
ROLE-OF-SME-IN-ECONOMIC-GROWTH-OF-INDIA.pptxROLE-OF-SME-IN-ECONOMIC-GROWTH-OF-INDIA.pptx
ROLE-OF-SME-IN-ECONOMIC-GROWTH-OF-INDIA.pptx
 
Growth and Future Prospects of MSME in India
Growth and Future Prospects of MSME in IndiaGrowth and Future Prospects of MSME in India
Growth and Future Prospects of MSME in India
 
Empowering MSMEs through financing and linkages
Empowering MSMEs through financing and linkagesEmpowering MSMEs through financing and linkages
Empowering MSMEs through financing and linkages
 
ROLE-OF-SME-IN-ECONOMIC-GROWTH-OF-INDIA (1).pptx
ROLE-OF-SME-IN-ECONOMIC-GROWTH-OF-INDIA (1).pptxROLE-OF-SME-IN-ECONOMIC-GROWTH-OF-INDIA (1).pptx
ROLE-OF-SME-IN-ECONOMIC-GROWTH-OF-INDIA (1).pptx
 
A study on problems and prospects of smes
A study on problems and prospects of smesA study on problems and prospects of smes
A study on problems and prospects of smes
 
article_on_msme.pdf
article_on_msme.pdfarticle_on_msme.pdf
article_on_msme.pdf
 
Growth of Micro, Small and Medium Enterprises in Manipur
Growth of Micro, Small and Medium Enterprises in ManipurGrowth of Micro, Small and Medium Enterprises in Manipur
Growth of Micro, Small and Medium Enterprises in Manipur
 
MSm Es and their role in ensuring sustainable economic development in india c...
MSm Es and their role in ensuring sustainable economic development in india c...MSm Es and their role in ensuring sustainable economic development in india c...
MSm Es and their role in ensuring sustainable economic development in india c...
 
MSME
MSMEMSME
MSME
 
msme act.pptx
msme act.pptxmsme act.pptx
msme act.pptx
 
Msme indian eco
Msme indian ecoMsme indian eco
Msme indian eco
 
An Overview of MSME Sector in India with Special Reference to the State of Ut...
An Overview of MSME Sector in India with Special Reference to the State of Ut...An Overview of MSME Sector in India with Special Reference to the State of Ut...
An Overview of MSME Sector in India with Special Reference to the State of Ut...
 
The Prospects and Problems of MSMEs sector in India an Analytical study
	The Prospects and Problems of MSMEs sector in India an Analytical study	The Prospects and Problems of MSMEs sector in India an Analytical study
The Prospects and Problems of MSMEs sector in India an Analytical study
 
39 progress and performance of micro, small and medium enterprises in india
39 progress and performance of micro, small and medium enterprises in india39 progress and performance of micro, small and medium enterprises in india
39 progress and performance of micro, small and medium enterprises in india
 
Progress and performance of micro, small and medium enterprises in india
Progress and performance of micro, small and medium enterprises in indiaProgress and performance of micro, small and medium enterprises in india
Progress and performance of micro, small and medium enterprises in india
 
Paramasivan1
Paramasivan1Paramasivan1
Paramasivan1
 

More from IJRAT

96202108
9620210896202108
96202108
IJRAT
 
97202107
9720210797202107
97202107
IJRAT
 
93202101
9320210193202101
93202101
IJRAT
 
92202102
9220210292202102
92202102
IJRAT
 
91202104
9120210491202104
91202104
IJRAT
 
87202003
8720200387202003
87202003
IJRAT
 
87202001
8720200187202001
87202001
IJRAT
 
86202013
8620201386202013
86202013
IJRAT
 
86202008
8620200886202008
86202008
IJRAT
 
86202005
8620200586202005
86202005
IJRAT
 
86202004
8620200486202004
86202004
IJRAT
 
85202026
8520202685202026
85202026
IJRAT
 
711201940
711201940711201940
711201940
IJRAT
 
711201939
711201939711201939
711201939
IJRAT
 
711201935
711201935711201935
711201935
IJRAT
 
711201927
711201927711201927
711201927
IJRAT
 
711201905
711201905711201905
711201905
IJRAT
 
710201947
710201947710201947
710201947
IJRAT
 
712201907
712201907712201907
712201907
IJRAT
 
712201903
712201903712201903
712201903
IJRAT
 

More from IJRAT (20)

96202108
9620210896202108
96202108
 
97202107
9720210797202107
97202107
 
93202101
9320210193202101
93202101
 
92202102
9220210292202102
92202102
 
91202104
9120210491202104
91202104
 
87202003
8720200387202003
87202003
 
87202001
8720200187202001
87202001
 
86202013
8620201386202013
86202013
 
86202008
8620200886202008
86202008
 
86202005
8620200586202005
86202005
 
86202004
8620200486202004
86202004
 
85202026
8520202685202026
85202026
 
711201940
711201940711201940
711201940
 
711201939
711201939711201939
711201939
 
711201935
711201935711201935
711201935
 
711201927
711201927711201927
711201927
 
711201905
711201905711201905
711201905
 
710201947
710201947710201947
710201947
 
712201907
712201907712201907
712201907
 
712201903
712201903712201903
712201903
 

Recently uploaded

Harnessing WebAssembly for Real-time Stateless Streaming Pipelines
Harnessing WebAssembly for Real-time Stateless Streaming PipelinesHarnessing WebAssembly for Real-time Stateless Streaming Pipelines
Harnessing WebAssembly for Real-time Stateless Streaming Pipelines
Christina Lin
 
TIME DIVISION MULTIPLEXING TECHNIQUE FOR COMMUNICATION SYSTEM
TIME DIVISION MULTIPLEXING TECHNIQUE FOR COMMUNICATION SYSTEMTIME DIVISION MULTIPLEXING TECHNIQUE FOR COMMUNICATION SYSTEM
TIME DIVISION MULTIPLEXING TECHNIQUE FOR COMMUNICATION SYSTEM
HODECEDSIET
 
Modelagem de um CSTR com reação endotermica.pdf
Modelagem de um CSTR com reação endotermica.pdfModelagem de um CSTR com reação endotermica.pdf
Modelagem de um CSTR com reação endotermica.pdf
camseq
 
Electric vehicle and photovoltaic advanced roles in enhancing the financial p...
Electric vehicle and photovoltaic advanced roles in enhancing the financial p...Electric vehicle and photovoltaic advanced roles in enhancing the financial p...
Electric vehicle and photovoltaic advanced roles in enhancing the financial p...
IJECEIAES
 
A review on techniques and modelling methodologies used for checking electrom...
A review on techniques and modelling methodologies used for checking electrom...A review on techniques and modelling methodologies used for checking electrom...
A review on techniques and modelling methodologies used for checking electrom...
nooriasukmaningtyas
 
5214-1693458878915-Unit 6 2023 to 2024 academic year assignment (AutoRecovere...
5214-1693458878915-Unit 6 2023 to 2024 academic year assignment (AutoRecovere...5214-1693458878915-Unit 6 2023 to 2024 academic year assignment (AutoRecovere...
5214-1693458878915-Unit 6 2023 to 2024 academic year assignment (AutoRecovere...
ihlasbinance2003
 
ISPM 15 Heat Treated Wood Stamps and why your shipping must have one
ISPM 15 Heat Treated Wood Stamps and why your shipping must have oneISPM 15 Heat Treated Wood Stamps and why your shipping must have one
ISPM 15 Heat Treated Wood Stamps and why your shipping must have one
Las Vegas Warehouse
 
Redefining brain tumor segmentation: a cutting-edge convolutional neural netw...
Redefining brain tumor segmentation: a cutting-edge convolutional neural netw...Redefining brain tumor segmentation: a cutting-edge convolutional neural netw...
Redefining brain tumor segmentation: a cutting-edge convolutional neural netw...
IJECEIAES
 
Recycled Concrete Aggregate in Construction Part III
Recycled Concrete Aggregate in Construction Part IIIRecycled Concrete Aggregate in Construction Part III
Recycled Concrete Aggregate in Construction Part III
Aditya Rajan Patra
 
A SYSTEMATIC RISK ASSESSMENT APPROACH FOR SECURING THE SMART IRRIGATION SYSTEMS
A SYSTEMATIC RISK ASSESSMENT APPROACH FOR SECURING THE SMART IRRIGATION SYSTEMSA SYSTEMATIC RISK ASSESSMENT APPROACH FOR SECURING THE SMART IRRIGATION SYSTEMS
A SYSTEMATIC RISK ASSESSMENT APPROACH FOR SECURING THE SMART IRRIGATION SYSTEMS
IJNSA Journal
 
Heat Resistant Concrete Presentation ppt
Heat Resistant Concrete Presentation pptHeat Resistant Concrete Presentation ppt
Heat Resistant Concrete Presentation ppt
mamunhossenbd75
 
ML Based Model for NIDS MSc Updated Presentation.v2.pptx
ML Based Model for NIDS MSc Updated Presentation.v2.pptxML Based Model for NIDS MSc Updated Presentation.v2.pptx
ML Based Model for NIDS MSc Updated Presentation.v2.pptx
JamalHussainArman
 
官方认证美国密歇根州立大学毕业证学位证书原版一模一样
官方认证美国密歇根州立大学毕业证学位证书原版一模一样官方认证美国密歇根州立大学毕业证学位证书原版一模一样
官方认证美国密歇根州立大学毕业证学位证书原版一模一样
171ticu
 
Recycled Concrete Aggregate in Construction Part II
Recycled Concrete Aggregate in Construction Part IIRecycled Concrete Aggregate in Construction Part II
Recycled Concrete Aggregate in Construction Part II
Aditya Rajan Patra
 
CSM Cloud Service Management Presentarion
CSM Cloud Service Management PresentarionCSM Cloud Service Management Presentarion
CSM Cloud Service Management Presentarion
rpskprasana
 
哪里办理(csu毕业证书)查尔斯特大学毕业证硕士学历原版一模一样
哪里办理(csu毕业证书)查尔斯特大学毕业证硕士学历原版一模一样哪里办理(csu毕业证书)查尔斯特大学毕业证硕士学历原版一模一样
哪里办理(csu毕业证书)查尔斯特大学毕业证硕士学历原版一模一样
insn4465
 
International Conference on NLP, Artificial Intelligence, Machine Learning an...
International Conference on NLP, Artificial Intelligence, Machine Learning an...International Conference on NLP, Artificial Intelligence, Machine Learning an...
International Conference on NLP, Artificial Intelligence, Machine Learning an...
gerogepatton
 
ACEP Magazine edition 4th launched on 05.06.2024
ACEP Magazine edition 4th launched on 05.06.2024ACEP Magazine edition 4th launched on 05.06.2024
ACEP Magazine edition 4th launched on 05.06.2024
Rahul
 
2008 BUILDING CONSTRUCTION Illustrated - Ching Chapter 02 The Building.pdf
2008 BUILDING CONSTRUCTION Illustrated - Ching Chapter 02 The Building.pdf2008 BUILDING CONSTRUCTION Illustrated - Ching Chapter 02 The Building.pdf
2008 BUILDING CONSTRUCTION Illustrated - Ching Chapter 02 The Building.pdf
Yasser Mahgoub
 
CHINA’S GEO-ECONOMIC OUTREACH IN CENTRAL ASIAN COUNTRIES AND FUTURE PROSPECT
CHINA’S GEO-ECONOMIC OUTREACH IN CENTRAL ASIAN COUNTRIES AND FUTURE PROSPECTCHINA’S GEO-ECONOMIC OUTREACH IN CENTRAL ASIAN COUNTRIES AND FUTURE PROSPECT
CHINA’S GEO-ECONOMIC OUTREACH IN CENTRAL ASIAN COUNTRIES AND FUTURE PROSPECT
jpsjournal1
 

Recently uploaded (20)

Harnessing WebAssembly for Real-time Stateless Streaming Pipelines
Harnessing WebAssembly for Real-time Stateless Streaming PipelinesHarnessing WebAssembly for Real-time Stateless Streaming Pipelines
Harnessing WebAssembly for Real-time Stateless Streaming Pipelines
 
TIME DIVISION MULTIPLEXING TECHNIQUE FOR COMMUNICATION SYSTEM
TIME DIVISION MULTIPLEXING TECHNIQUE FOR COMMUNICATION SYSTEMTIME DIVISION MULTIPLEXING TECHNIQUE FOR COMMUNICATION SYSTEM
TIME DIVISION MULTIPLEXING TECHNIQUE FOR COMMUNICATION SYSTEM
 
Modelagem de um CSTR com reação endotermica.pdf
Modelagem de um CSTR com reação endotermica.pdfModelagem de um CSTR com reação endotermica.pdf
Modelagem de um CSTR com reação endotermica.pdf
 
Electric vehicle and photovoltaic advanced roles in enhancing the financial p...
Electric vehicle and photovoltaic advanced roles in enhancing the financial p...Electric vehicle and photovoltaic advanced roles in enhancing the financial p...
Electric vehicle and photovoltaic advanced roles in enhancing the financial p...
 
A review on techniques and modelling methodologies used for checking electrom...
A review on techniques and modelling methodologies used for checking electrom...A review on techniques and modelling methodologies used for checking electrom...
A review on techniques and modelling methodologies used for checking electrom...
 
5214-1693458878915-Unit 6 2023 to 2024 academic year assignment (AutoRecovere...
5214-1693458878915-Unit 6 2023 to 2024 academic year assignment (AutoRecovere...5214-1693458878915-Unit 6 2023 to 2024 academic year assignment (AutoRecovere...
5214-1693458878915-Unit 6 2023 to 2024 academic year assignment (AutoRecovere...
 
ISPM 15 Heat Treated Wood Stamps and why your shipping must have one
ISPM 15 Heat Treated Wood Stamps and why your shipping must have oneISPM 15 Heat Treated Wood Stamps and why your shipping must have one
ISPM 15 Heat Treated Wood Stamps and why your shipping must have one
 
Redefining brain tumor segmentation: a cutting-edge convolutional neural netw...
Redefining brain tumor segmentation: a cutting-edge convolutional neural netw...Redefining brain tumor segmentation: a cutting-edge convolutional neural netw...
Redefining brain tumor segmentation: a cutting-edge convolutional neural netw...
 
Recycled Concrete Aggregate in Construction Part III
Recycled Concrete Aggregate in Construction Part IIIRecycled Concrete Aggregate in Construction Part III
Recycled Concrete Aggregate in Construction Part III
 
A SYSTEMATIC RISK ASSESSMENT APPROACH FOR SECURING THE SMART IRRIGATION SYSTEMS
A SYSTEMATIC RISK ASSESSMENT APPROACH FOR SECURING THE SMART IRRIGATION SYSTEMSA SYSTEMATIC RISK ASSESSMENT APPROACH FOR SECURING THE SMART IRRIGATION SYSTEMS
A SYSTEMATIC RISK ASSESSMENT APPROACH FOR SECURING THE SMART IRRIGATION SYSTEMS
 
Heat Resistant Concrete Presentation ppt
Heat Resistant Concrete Presentation pptHeat Resistant Concrete Presentation ppt
Heat Resistant Concrete Presentation ppt
 
ML Based Model for NIDS MSc Updated Presentation.v2.pptx
ML Based Model for NIDS MSc Updated Presentation.v2.pptxML Based Model for NIDS MSc Updated Presentation.v2.pptx
ML Based Model for NIDS MSc Updated Presentation.v2.pptx
 
官方认证美国密歇根州立大学毕业证学位证书原版一模一样
官方认证美国密歇根州立大学毕业证学位证书原版一模一样官方认证美国密歇根州立大学毕业证学位证书原版一模一样
官方认证美国密歇根州立大学毕业证学位证书原版一模一样
 
Recycled Concrete Aggregate in Construction Part II
Recycled Concrete Aggregate in Construction Part IIRecycled Concrete Aggregate in Construction Part II
Recycled Concrete Aggregate in Construction Part II
 
CSM Cloud Service Management Presentarion
CSM Cloud Service Management PresentarionCSM Cloud Service Management Presentarion
CSM Cloud Service Management Presentarion
 
哪里办理(csu毕业证书)查尔斯特大学毕业证硕士学历原版一模一样
哪里办理(csu毕业证书)查尔斯特大学毕业证硕士学历原版一模一样哪里办理(csu毕业证书)查尔斯特大学毕业证硕士学历原版一模一样
哪里办理(csu毕业证书)查尔斯特大学毕业证硕士学历原版一模一样
 
International Conference on NLP, Artificial Intelligence, Machine Learning an...
International Conference on NLP, Artificial Intelligence, Machine Learning an...International Conference on NLP, Artificial Intelligence, Machine Learning an...
International Conference on NLP, Artificial Intelligence, Machine Learning an...
 
ACEP Magazine edition 4th launched on 05.06.2024
ACEP Magazine edition 4th launched on 05.06.2024ACEP Magazine edition 4th launched on 05.06.2024
ACEP Magazine edition 4th launched on 05.06.2024
 
2008 BUILDING CONSTRUCTION Illustrated - Ching Chapter 02 The Building.pdf
2008 BUILDING CONSTRUCTION Illustrated - Ching Chapter 02 The Building.pdf2008 BUILDING CONSTRUCTION Illustrated - Ching Chapter 02 The Building.pdf
2008 BUILDING CONSTRUCTION Illustrated - Ching Chapter 02 The Building.pdf
 
CHINA’S GEO-ECONOMIC OUTREACH IN CENTRAL ASIAN COUNTRIES AND FUTURE PROSPECT
CHINA’S GEO-ECONOMIC OUTREACH IN CENTRAL ASIAN COUNTRIES AND FUTURE PROSPECTCHINA’S GEO-ECONOMIC OUTREACH IN CENTRAL ASIAN COUNTRIES AND FUTURE PROSPECT
CHINA’S GEO-ECONOMIC OUTREACH IN CENTRAL ASIAN COUNTRIES AND FUTURE PROSPECT
 

Paper id 27201411

  • 1. International Journal of Research in Advent Technology, Vol.2, No.7, July 2014 E-ISSN: 2321-9637 22 ERP in Indian SMEs: Issues, challenges and Future P. D. Deshmukh 1, V.R. Kalamkar 2, G. T. Thampi 3 Department of Mechanical Engineering, SPCE, Andheri, Mumbai University 1, Department of Mechanical Engineering, VNIT, Nagpur University 2, Department of Mechanical Engineering, TSCE, Bandra, Mumbai 3, Email: pddeshmukh7@gmail.com1 ,vilas.kalamkar@gmail.com 2, gtthampi@gmail.com 2 Abstract-: In knowledge based economy, Indian enterprises have challenges to provide high quality product at low cost, to remain more competitive in world. Small and Medium-Size Enterprises represent the spinal cord of Indian economy. To improve productivity and overall business performance, Enterprise Resource Planning (ERP) is one of the solutions for the Small and Medium Enterprises (SMEs) in order to face the global challenges. According to SME chamber of India, there are about 26.1 million MSME (micro small and medium enterprises) in India, contributing about 17% to India’s GDP and 45% to aggregate industrial output. But the adoption of Information Technology and IT based ERP system is quite unsatisfactory. This paper discusses SMES contribution in economic growth by evaluating new information function provided by ERP system which acts as drivers to increase SMEs’ efficiency and productivity in the current global economy in terms of benefits. Author also shades light on issues, Challenges of ERP implementation In Indian SMES. In this paper author tried to answer the research question that Is ERP system act as driver for growth of SMEs in India? Cost effective and flexible architecture and integrated solutions which were initially targeted for large businesses can also bring value for Indian SMEs. Index Terms- ERP in Indian SMEs, Issues in Indian SMES, Challenges for ERP Implementation in Indian Context. 1. INTRODUCTION According to the Government of India’s Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, A small enterprise is an enterprise where the investment in plant and machinery is more than Rs. 25 lakh but does not exceed Rs. 5 crore; and A medium enterprise is an enterprise where the investment in plant and machinery is more than Rs.5 crore but does not exceed Rs.10 crore, which engaged in the manufacture or production, processing or preservation of goods. The Enterprises engaged in providing services are defined as A small enterprise where the investment in equipment is more than Rs.10 lakh but does not exceed Rs. 2 crore; and A medium enterprise is an enterprise where the investment in equipment is more than Rs. 2 crore but does not exceed Rs. 5 crore. [21]. Indian SMEs have limitations of investment in plant or equipments. But SMEs are the engine of economic development, they constitute the majority of business enterprises, and they are vital for employment generation and poverty alleviation. Many developing-country SMEs have inserted themselves into vertical production networks as component suppliers to big multinational companies, increasing their contribution in export receipts. SMEs, as major employers especially in rural areas, make valuable and necessary contributions to poverty alleviation by increasing income levels and creating jobs. In both developed and developing economies, the organic growth of small enterprises is a vital source of wealth creation.[33] SMEs are the driver of economic growth and innovation. The total number of SMEs in the economy depends on the rate of SME creation and rate of SME destruction. Profitable market increases the total number of SMEs in the country, and increase in SMES also increases job creation and income per capita. New market opportunities will be created when people will increase their consumption. Contrary to multinational corporations, the growth of SMEs directly benefits the country because most SMEs are domestic firms. When the number of SMEs increase as a result this their knowledge of their product and industry is raised which drives the innovation in product and process; leads to economic growth. It also helps them form a competitive advantage to generate more profits. [34] Importance of SMEs Indian Economy Small and medium enterprises (SMEs) play a key role in the growth of the Indian economy by contributing to industrial output or generating employment, the SMEs have always made remarkable progress achieved across traditional and emerging sectors such as manufacturing, pharmaceuticals, textile, food processing, and retail, garments, IT and several other service sectors. SMEs generates millions of jobs, especially for low-skills level, low educated people. [ec] Currently, India’s SME sector is a flexible
  • 2. International Journal of Research in Advent Technology, Vol.2, No.7, July 2014 E-ISSN: 2321-9637 23 dynamic, and productive entity, as it employ nearly 81 million people in 36 million units across the country and contribute almost 45 percent to the total industrial output. In recent times, SMEs have been fulfilling to Indian Market as well as international markets and have emerged as leaders even during the period of recession by restoring jobs and business activity. It acts as a prime medium for regional development and the economical development of weaker sections of society.[35] At the time of removal of quantitative restrictions under WTO in 2001, it was predicted that the sector would fall down under the attack of global products. But this sector quickly adapted and restructured itself with technology, accepted norms of quality and competitiveness. It is expanded faster than the rest of the industrial economy. [10] Its contribution to the Indian GDP, which as per the Economic Survey of India for the year 2012-13 is 7.9 percent Due to their contribution to the Indian GDP, which as per the Economic Survey of India for the year 2012-13 is 7.9 percent, they can be aptly called the backbone of the Indian economy, called as the backbone of the Indian economy [35]. 2. GROWTH AND CHALLENGES IN THE SMES SECTOR IN INDIA The number of small-scale units has increased from an estimated 48.8 million units in the year 2013-14 to over 46.7 million in the year 2012. Due to Great Potential of SMEs, it has performed exceedingly well and created wide industrial growth opportunities and diversification. SMEs sector has made significant contributions towards employment generation and rural industrialization. SMEs sector in India creates largest employment opportunities for the Indian populace, next only to agriculture. . Statistics from Ministry of Micro, Small & Medium Enterprises also revealed the growth of SMEs industry in India It has been estimated that 100,000 rupees of investment in fixed assets in the SMEs sector generates employment for four persons[39] [38]. Small and Medium Enterprises (SMEs) play a vital role for the growth of Indian economy by contributing 45% of industrial output, 40% of exports, create 1.3 million jobs every year and produce more than 8000 quality products for the Indian and international markets. There are approximately 30 million MSME Units in India and 12 million persons are expected to join the workforce in the next 3 years. SME’s Contribution towards GDP in 2011 was 17% which is expected to increase to 22% by 2012. SMEs are the source of several innovations in manufacturing and service sectors, which serves as the major link in the supply chain to corporate and the PSUs. Promoting SMEs is nothing but promoting the development in the rural areas of India. [37] It is necessary to support the SMEs, for empowerment of optimum utilization of resources, for achieving the success; as SMEs are growth engine of Indian economy. The SMEs need to be educated and informed of the latest developments taking place globally and helped to acquire skills necessary to rate with the global growth. [37] Despite its commendable contribution to the Nation's economy, SMEs are facing a number of problems and several challenges. At the same time it has limitations of SMEs, like Low Capital base, Concentration of functions in one / two persons; Inadequate exposure to international environment, Inability to face impact of WTO regime, Inadequate contribution towards R & D, Lack of professionalism.[22] Challenges for Indian SMEs · Inadequate infrastructure, finance, non-availability of highly skilled labor at affordable costs [40] · Absence of adequate knowledge, technology, low production capacity, ineffective marketing strategy, constraints on modernization & expansions, identification of new markets, follow-up with various government agencies to resolve problems[22] · Becoming More Competitive in the global market by cost-cutting, quality enhancement, productivity improvement and efficient management of supply chains, greater public and private investment in infrastructure with limited investment and machinery.[36] SME Sector does not get the required support from the concerned Banks, Financial Institutions, Government Departments and Corporate, to become more competitive in the National and International Markets.[36] · Enhancing Access to Global Markets by greater policy coordination within the Indian Government for a coherent approach to emerging trade policy issues, an institutional partnership between the private sector and the Government in devising specific marketing strategies.[36] · Safeguarding Intellectual Property by effectively administering copyright and patent legislation, encouraging more innovations and patenting them.[36] · Promoting Small-Scale and Cottage Industries, and Regional Cluster Development by removing policy impediments; financial support; technology, skills and quality upgrading; market support and improving links between small and large firms. [36] · Increasing Exports[36]
  • 3. International Journal of Research in Advent Technology, Vol.2, No.7, July 2014 E-ISSN: 2321-9637 24 · Enhanced competition from China and a few low cost centers of production [22]. Indian SMEs have been facing a tough time due to globalization and liberalization in trade, coupled with WTO regime, but the SMEs who have strong technological base, international business outlook, competitive spirit and willingness to restructure them, better withstanding o f the present challenges can make shining make their own contribution to the Indian economy [22]. The government has a vital role to play creating awareness about ICT applications amongst Indian firms, above all in micro, small, and medium enterprises (MSMEs) [41].While SMEs are slowly adopting IT tools in their operations to become more competitive, but the penetration of IT in SMEs is much below than its potential. Currently IT can be used in areas like production monitoring and control, quality monitoring and control, etc. can streamline the business process and SMEs are slowly awakened about this [38]. 3. ERP AND SMEs IN INDIA. Enterprise resource planning (ERP) systems integrate and automate internal and external management information across an entire organization, embracing manufacturing, finance/accounting, sales and service, customer relationship management, etc. The purpose of ERP is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders. Enterprise systems (or Enterprise Resource Planning) are an emerging technology that belongs to the scientific discipline of information systems [18] [20]. This is a software package which should include the following features: · An integrated system which functions in real time not requiring you to depend on periodic updates. · It should have a common database. · Each module should have the same look and feel to uncomplicated things. · Each department should be able to access the system without having to consult the IT department. ERP system provides advantages like provides visibility of all the important processes across various departments of an organization; automatic and coherent work; unified and single reporting system to analyze the statistics/ numbers/ status etc in real time, across all the functions / departments; provides Business Intelligence functionalities; Advanced e-commerce integration to handle web based order tracking/ processing; provides secure as centralized security policies for all the transactions enable better/ faster collaboration across all the departments; possible to integrate other systems (like bar-code reader, for example) to the ERP system through an API (Application Programming Interface) [7]. But there are some disadvantages of ERP system like cost of ERP Software, planning, customization, configuration, testing, implementation, and further up gradations ; time required for implementation(ERP deployments take 1-3 years to get completed and fully functional); difficult to calculate return on Investment; Migration of existing data to the new ERP systems [7]. There are different Issues and Challenges of ERP implementation In Indian SME’s like lack of Awareness, perception that ERP is meant only for large firms mainly owing to the high costs of acquisition, Earlier Implementation failures , customization increases the cost; less of capital than their larger counterparts, Change management, Limited resource of in-house IT team. Some of the factors to be considered before starting an ERP system implementation are: • Infrastructure resource planning • Education about ERP • Human resource planning • Top management commitment • Training facilities • Right people for the implementation These factors help organizations to understand their level of preparedness for an ERP implementation [7]. Before the implementation organizations must evaluate organizational objectives and requirements, Planning, customer profile, global support base as well as the financial credentials [7]. Small to medium-sized enterprises (SMEs) can find difficult to put the power of technology solutions into the work for their businesses as there are some ERP implementation challenges and business challenges like global competition, evolving operational processes, complex regulations and product diversification. Indian SMES can convert these challenges into opportunities with a powerful IT solution. ERP system can provide SMEs with the launch pad for long-term growth, competitiveness and success [44]. Small to medium-sized enterprises (SMEs) often have sophisticated and industry-specific business processes and IT needs, but must cater these needs with relatively small budgets and IT staffs. 4. LITERATURE REVIEW In the late 90’s, researchers started to show interest in Enterprise Resource Planning. Davenport (1998) discussed the functionality of an ERP system and the complexity of implementation. Van Everdingen et al. (2000) surveyed more than 2000 European companies in order to study adoption of ERP in different industries. Much of the early research focused on implementation issues and the use of “Best Practices” in processes. Nau and Lau (2001) identified certain factors by analyzing selective articles for successful
  • 4. International Journal of Research in Advent Technology, Vol.2, No.7, July 2014 E-ISSN: 2321-9637 25 implementation of ERP and Muscatello (2002) surveyed the essential factors in ERP implementation. Al-Mashari (2002) presents a research agenda for ERP and identified a huge gap in the ERP literature. Ashim.et.al[2004], studied the design and implementation risks factors for ERP systems in Indian organizations. Buonanno.et.al[2005], analyzed of the empirical data and composed that that business complexity is a weak predictor of ERP adoption. Wu.et.al [2006] used Hochstrasser model is used to analyze the uncertainties of tangible benefits in the process of ERP project investment. Jafari et al. (2006) carried a research for Malaysian SMEs and identified ten important issues for the success of ERP implementation. Woo (2007) carried out research for major Chinese organizations and reported six critical issues for the successful implementation of ERP systems. Upadhyay and Dan (2008), carried out research study for Indian SME organizations where the researchers empirically assessed and, on the basis of responses received from the respondents, identified certain issues that actually would lead to the success of ERP implementation. Kale.et.al(2009), presented that in India, SMEs are the backbone of the economy and are today faced with global competition. Parijat.et.al(2009), targeted to the SME’s which already completed the process of adopting an ERP system to bring out the underlying factors which can prove decisive for success. Upadhyay and Dan (2009) performed a research for Indian SME's and revealed that certain critical factors could lead to positive implementation of ERP. Päivi(2009) discussed that the principal reason for failure has often been associated with the poor management of ERP implementation projects. Noudoostbeni et al. [2009] assessed important success factors and failure factors in Malaysian SME companies. Garg(2010), explored and validated the existing literature empirically to find out the critical failure factors that lead to the failure of ERP in context to Indian retail organizations. Ganesh.et.al(2010), argues that Indian consultants often fail in recognizing the technology, vendor, employee, project etc related influence to the ERP implementation. Poonam(2010), explored and validated the existing literature empirically to find out the critical success factors. Above literature study clearly point out that ERP system will help SMEs to achieve growth challenges and remain competitive in global economy. 4. ERP SYSTEM AS GROWTH MULTIPLIER FOR SMEs IN INDIA. A vast majority of small and medium scale organizations have some significant constraints in their resources. While Indian SMEs overlook the benefits of integrating ERP systems stating that such ERP software are beyond their budgets as the reason, but there is no doubt that the implementation of ERP software can improve the company’s performance as well. The awareness of implementing enterprise business application (i.e. ERP) among SMEs is less than 35%, as compared to over 80% for large organizations as per survey conducted by International Data Corporation (IDC). The critical influencing business drivers for SME segment will be to increase the overall business efficiency, to increase the capital and labor productivity and to reduce the fixed and variable cost. Research and survey by leading IT vendors clearly points out that the need for technology solutions is not only confined to Tier 1 cities in India but also business organizations operating from Tier II and Tier III cities also need ERP solutions as well. As all ERP vendors are focusing on this market, the Indian SME segment will have many alternatives to choose any one out of such high competitive price [44]. SME Challenges ERP Software Benefits Reconciling disparate, A common and capable incompatible and/or platform for all core limited function legacy business operations systems from organic growth or acquisitions Rationalizing distributed, inconsistent and/or out-of-date corporate data Support for “single-version- of-the-truth” data that can be shared across departments, and with key partners and customers Meeting regulatory requirements, including those specific to vertical industry sectors and different countries Provides integral regulatory compliance and reporting functionality Inadequate IT systems constrain growth A multifunction and scalable platform that can keep pace with, and facilitate, company growth Inconsistent and/or inefficient business processes, which are labor intensive, time consuming and error prone Standardization and automation of core processes; templates for best practices; tracking of key performance indicators Global expansion, which requires currency conversions, financial consolidations and roll-ups Built-in support to track exchange rates, convert currencies and consolidate financials The need to interface easily with other IT software and systems Support for standard interfaces to most commonly used software and systems, including mobile The need to diversify with expanded product Tools to track product SKU inventory,
  • 5. International Journal of Research in Advent Technology, Vol.2, No.7, July 2014 E-ISSN: 2321-9637 26 or service portfolios shipment logistics, service delivery, etc. Source: SMB group 2011 As above table shows that can fulfill SMEs challenges and act as growth multiplier as it helpful for global expansion and sustain in competition. ERP software provides many benefits like improves the efficiency of business process, cut down in labor cost, information automation, timeliness delivery of information. As ERP usage reduces manpower, time, error, land and improves business process transactions, efficiency, and quality of work, innovative in process. So ERP can act as growth multiplier for SMEs. But still there are some reasons for not using ERP system. While many new SMEs start each year, nearly 50% end to exist in the first 3 years of business itself, and only 40% survive beyond 10 years. Though it is assumed that all SMEs desire growth, majority of the firms do not consider on of long-term business strategy but focus only on survival. When the business begins to fail as a result of not keeping track of the changing market scenario, then only SMEs think about change only [41]. According to Gattiker et. al [2005], ERP implementation failure rate is from 40%. According to Gordon [2006], the main factors that can be held responsible for failure of ERP system are-poor planning or poor management, change in business goals during project, lack of business management support, issue of concern is the cost feasibility of system integration, training and user licenses, system utilization, etc.[45][46]. ERP client server has been implemented by many large media companies despite the fact that this application is quite expensive. Most of small and medium-sized companies never think to implement the software in their business systems due to high cost of proprietary software and time required for the implementation. The proprietary software vendors of ERP include maintenance fees, initial cost, training cost and hardware cost. But there are different low cost options/approaches are available in market. 5. LOW COST ERP SOLUTIONS There are different solutions available in market to get low cost system which is helpful for running business processes of SMEs efficiently and improves the productivity of business by reducing inputs and improving output of business process. Open source ERP Open Source ERP does not require a license or implementation cost like proprietary software. It can only download from the internet, installed in the system and run your business. Open Source ERP provides most of the function of ERP system to cater the needs of small and medium-sized companies Download and installation process lasted only a few minutes and for you immediately, of course ERP software has advantages and disadvantages as other software.[42] Advantages · Since maintenance fees are not included in the initial cost and there are no licensing costs, open source systems are essentially free to own and use. The total cost of ownership may also be less than proprietary software since maintenance fees are usually lower. · The source code can be modified and customized to meet your organization’s business needs and there are typically a wide range of integration formats.[42] Disadvantages · The basic, free version of open source software will probably not fully meet your organization’s expectations so it will inevitably end up investing in maintenance and support. The more your organization customizes the software, the more money it will likely end up spending. · Since open source may provide fewer active customers than top-tier commercial ERP providers like SAP.[42] Cloud based ERP Cloud based solution provides you the best practices and tools that were available to only larger enterprises until now and that too at affordable price. It consist all the features of best Enterprise level ERP that are required by SMEs and is delivered using cloud route. Like proprietary ERP, Cloud based ERP software provides all the functions like automated business processes, information management with added intelligence, ensuring improved productivity and accelerated growth but it also frees up your team from traditional admin activities, and focus on core business processes. On Demand ERP captures tasks across Apps and makes them available on your dashboard with notifications for each task. The cloud ERP Applications are seamlessly integrated to work from a single login on a single database. Small & Medium enterprises (SMEs) including Start ups across India, Australia, USA and Europe are Accelerating Growth by leveraging Cloud ERP. It provides advantages like minimum investment, Minimized technical staff involvement, increase scalability, Fewer Responsibilities, lower initial cost, Roles based Dashboard, Just Configure and Get Started with On Demand SaaS ERP on the Cloud ,Zero IT infrastructure cost and maintenance with SaaS ERP run and managed by cloud, and Reports and Analytics in the cloud built into the ERP system [43] Traditional On-site ERP is being replaced by online ERP accessed through a web browser. The Online ERP is also known as web based ERP, hosted ERP,
  • 6. International Journal of Research in Advent Technology, Vol.2, No.7, July 2014 E-ISSN: 2321-9637 27 cloud ERP, SaaS ERP, or on-demand ERP. Small & Medium Companies as well as Start ups are moving ERP cloud applications to manage all their Business Processes. Web-Based ERP reduces total Cost of ownership as compare to on site ERP. It provides rapid implementation with customization and free up-gradation. But in terms of features and scalability it provides limited functionality and scalability.[43] 6. CONCLUSION SMEs area unit plays important role in economic development, as they represent the majority of business enterprises, and that they area unit very important for employment generation and financial condition alleviation.SME sector in India has been growing speedily over the past few years, however the ICT based Practices like ERP adoption of among SME sector has been stunning slow. This will be attributed to varied provide aspect and demand aspect constraints that are touching the ERP adoption among the SMEs. The advantages of ERP area unit clearly visible as corporations having ERP systems and processes have managed sturdy profits and efficiencies. SMEs area unit currently realizing that their growth will solely be sustained if they will properly manage the degree of their business through a lot of involvement with ICT. As SME corporations modify to implement ERP system with all its power, it's imperative that the highest leadership maintains associate perspective of continuing commitment and properly order the implementation of ERP initiatives across the organization. Clear communication and Planning can go an extended means in making a flourishing scheme of IT among a SME. SAP Business All-in-One solutions provide growing SMEs an inexpensive and rapid-to-implement way to gain “professional-grade” ERP capabilities and SAP’s best-practice business processes. Social, mobile and cloud technology is new wave in future SMEs. These technologies not solely empowers worker however conjointly give access to up-to-date data among a moment with value effectiveness. The versatile design and integrated solutions with customization were first targeted for big businesses can even bring worth for Indian SMEs. REFERENCES [1] Päivi[2009], Päivi Iskanius , “Risk Management in ERP Project in the Context of SMEs”, Engineering Letters, ISSN: 1816-0948, Vol. 17, No. 4, 2009. [2] Parijat.et.al[2009], Parijat Upadhyay, Pranab K Dan, “ERP in Indian SME’s: A Post Implementation Study of the Underlying Critical Success Factors”, International Journal of Management Innovation System, ISSN 1943- 1384, Vol. 1, No. 2, 2009. [3] Ashim.et.al[2004], Ashim raj single, D.p.goyal,” Managing risk factors in design and implementation of erp systems (an empirical investigation of the Indian industry)”, IAMOT Conference Archive, IAMOT, 2004. [4] Garg[2010], Poonam Garg, “Critical Failure Factors for Enterprise Resource Planning Implementations in Indian Retail Organizations: An Exploratory Study”, Journal of Information Technology Impact, Vol. 10, No. 1, pp. 35-44, 2010. [5] Wu.et.al [2006], F. Wu, C. Liu, H. Z. Li, K. Gao and J. Tian, “The Benefits Evaluation of ERP Project Investment Based on Real Options” , IEEE International Conference on Systems, Man, and Cybernetics, 1-4244-0099-6, pp 4078 - 4083 , 2006. [6] Buonanno.et.al[2005], G. Buonanno, P. Faverio, F. Pigni, A. Ravarini, D. Sciuto and M. Tagliavini, “Factors affecting ERP system adoption A comparative analysis between SMEs and large companies ” , Journal of Enterprise Information Management, ISSN: 1741-0398, Vol. 18, No. 4, pp.384 – 426, 2005. [7] Kale.et.al[2009], P. T. Kale, S. S. Banwait, S. C. Laroiya, “Enterprise Resource Planning Implementation in Indian SMEs: Issues and Challenges”, Business Process Management Journal, pp 242-248, 2009. [8] A report on Prime Minister’s Task Force on Macro ,Small and Medium Scale enterprises, Government of India, 2010. [9] Amin Hakim, Hamid Hakim, “A practical model on controlling the ERP implementation risks”, Information System (ELSEVIER), Vol. 35, No. 2, pp 204-214, 2010. [10]Saini S, Nigam S., Misra S.C, ” Success Factors for Implementing ERP in SMEs in India: A Conceptual Model”, Information Management and Engineering (ICIME), IEEE, 978-1-4244- 5263-7, pp 165 – 169, 2010. [11]Vinod Kumar, Bharat Maheshwari, Uma Kumar, “An investigation of critical management issues in ERP implementation: empirical evidence from Canadian organizations” The International Journal of Technological Innovation, Entrepreneurship and Technology Management, Technovation,Elsevier, pp 793-807, 2010. [12] http://www.erp-india.org/erp_software_india.htm
  • 7. International Journal of Research in Advent Technology, Vol.2, No.7, July 2014 E-ISSN: 2321-9637 28 [13]Eugenia Papaioanno,Christos Sarmaniotis, Costas Assimakopoulos,Christos K. Georgiadis, “A successful deployment of an ERP system: A case study of a small Greek company”, 8th ICESAL, 2011. [14]Ashish Kr. Dixit, Om Prakash, “A Study of Issues Affecting ERP Implementation In SMES” , International Refereed Research Journal, ISSN 2231-4172,Vol.– II, Issue –2, 2011. [15]Ceyda Gungor Sen, Hayri Baraclı, Selcuk Sen b, Huseyin Baslıgil, ” An integrated decision support system dealing with qualitative and quantitative objectives for enterprise software selection”, Expert systems with applications, ELSEVIER, Vol. 36, No 3, Part 1, pp 5272-5283, 2009. [16]Vinod kumar Garg, N.K. Venkitakrishan, “ ERP concepts and practice”, second edition, PHI, 2009. [17]Asim Raj Singla, “ERP”, Cengage Learning, 2008. [18]Alexis leon, “ERP”, TMH, 2009. [19]ERP definition, http://www.erpdefinition.net/ accessed on 11-Jan-2010 [20]Advantages-disadvantages-of-erp-enterprise-resource- planning-system, http://www.excitingip.com/2010, accessed on Jan-2010 [21]Small_and_medium_enterprises, http://en.wikipedia.org/wiki, accessed on Jan- 2010. [22]Small and medium enterprises (SMES) in india, http://www.dsir.gov.in/ reports/mitcon- /chap2.pdf, accessed on Dec-2009. [23]Al-Mashari M. (2002). “Enterprise resource planning (ERP) systems: a research agenda”, Industrial Management & Data Systems, 102, 165-170 [24] Jafari[2006], Jafari, S. M., Osman, M. R., Yusuf, R. M., & Tang, S. H., (2006).” ERP systems implementation in Malaysia: The importance of critical success factors”, Engineering and Technology, 3, 125-131. [25]Muscatello, J. R. (2002). “An Exploratory Study of the Implementation of Enterprise Resource Planning (ERP). Dissertation, Cleveland State University” [26]Upadhyay, P. & Dan, P.K. (2008). An explorative study to identify the Critical Success Factors for ERP implementation in Indian small and medium scale enterprises, IEEE, 295-299. [27]Woo, H. S., (2007). “Critical success factors for implementing ERP: the case of a Chinese electronics manufacturer”, Journal of Manufacturing Technology Management, 18(4), 431 -442 [28] http://manufacturers-blognotions.tradepub.com/ free/w_epic48/prgm.cgi [29] http://manufacturers-blognotions. tradepub.com/free-offer/5-ways-erp-can- help-you-implement-lean/ w_epic48?sr=adv&_t=adv:Epicor%20Softw are%20Corporation [30] http://manufacturers-blognotions. tradepub.com/category/manufacturin g/1210 [31] http://manufacturers-blognotions. tradepub.com/?pt=adv&page=Epicor %20Software%20Corporation [32] http://manufacturers-blognotions. tradepub.com/free/w_epic48/ [33]Report, “How to access Trade finance: A guide for exporting SMEs”, International Trade Centre 2009 [34]Vadim Kotelnikov,“Small and Medium Enterprises and ICT”, Asia-Pacific Development Information Programme [35] http://entrepreneurindia.in/people/specials/smes-and- budget-2013/18704/ /Indian SME Clusters.htm [36]The challenges of introducing ERP in SMEs Roland Berger News Media Roland Berger.htm [37] http://smeworld.org/story/features/role-of-smes-sector- in-the-emerging-indian-economy.php Future of Indian Entrepreneurship [38]Needs and Challenges of SMEs in India [39]Bikky Khosla, ICT and the Indian SMEby, Infocom Network Ltd -Tradeindia.com [40]M.P.Thapliyal1, Pooja Vashishta2,”ERP Software Implementation in Indian Small and Medium Enterprises”, International Journal of Emerging Trends & Technology in Computer Science (IJETTCS), Volume 1, Issue 2, August 2012 [41]Cloud ERP for SMEs SaaS ERP Software On Demand workXmate India.htm [42] http://eastvantage.blogspot.in/2012/04/advantage s-and-disadvantages-of-using. html#.U6G9q6iSxgk [43] http://www.workxmate.com/saas-software/cloud-crm. html [44] Report,”From Aspiration to Achievement: ERP for Growing SMEs, SMB group, Oct. 2011 [45]Gattiker et. al [2005], ,Gattiker, T.F.,Goodhue, D.L.,”What Happens after ERP Implementation: Understanding the Impact of Interdependence and Differentiation on Plant-level Outcomes”, MIS Quarterly, 29, 3, 559- 585, 2005 [46]Gordon [2006], Gordon A ., “ERP Applications: Myth and Misconceptions”, EzineArticles,(www.ezinearticles.com), Dec14, 2010