ERP Systems in the Small Business Analytical Essay by Nicky

An in-depth examination of how enterprise resource planning (ERP) can help small businesses financially sustain their competitive advantage.
# 151427 | 3,953 words | 21 sources | APA | 2012 | US

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The paper analyzes the key success factors that small business owners and Chief Executive Officers (CEOs) need to consider in order for enterprise resource planning(ERP) system planning, implementation and use to be effective and deliver results. The paper identifies the reasons why ERP systems fail in small business and illustrates how best practices can help small businesses financially sustain themselves.

Executive Summary
Lessons Learned From ERP Failures in Small Business
How ERP Systems Can Financially Sustain Competitive Advantage in Small Businesses

From the Paper:

"The failure of any ERP system in a small business can be attributed to a variety of factors, but one of the most prevalent is when it ceases to be relevant to meeting customers' needs (Loh, Loh, 2004). This occurs when customer management and selling strategies, as diverse as quoting and bidding to pricing and engineer-to-order, are not integrated to an ERP system. When this happens there are silos of information generated by each of these stand-alone systems. When these customer-facing strategies are not interlinked to an ERP system to see for example if a custom-configured product can actually be built, manufacturing companies will take on average seven iterations of a quote to get it right (Allen, 2008). In the meantime customers get increasingly dissatisfied and begin to look for other suppliers to work with.
"It's not enough however for a quoting process and its strategies to be integrated into an ERP system if a small business hopes to be more responsive to customers. Instead each strategy the company relies on for attracting, selling and serving customers must also be integrated to the ERP system so that when commitments are made to customers they can be kept. Too often companies will have each of their customer strategies isolated and with varying ways to define delivery dates, prices, even the approach for building the product being ordered."

Sample of Sources Used:

  • Lee E. Allen (2008). Where good ERP implementations go bad: a case for continuity. Business Process Management Journal, 14(3), 327-337.
  • Barrett, J. (2007, November). Demand-Driven is an Operational Strategy. Industrial Management, 49(6), 14-19,5.
  • Howar Bellin. (2006). Best Practice Channel Management: The Channel Management Framework. Journal of Marketing Channels, 14(1/2), 117.
  • Shih-Wei Chou, Yu-Chieh Chang. (2008). The implementation factors that influence the ERP (enterprise resource planning) benefits. Decision Support Systems, 46(1), 149.
  • Coronado, A E, Lyons, A C, Kehoe, D F, & Coleman, J. (2004). Enabling Mass Customization: Extending Build-To-Order Concepts To Supply Chains. Production Planning & Control, 15(4), 399-411

Cite this Analytical Essay:

APA Format

ERP Systems in the Small Business (2012, June 11) Retrieved December 09, 2023, from

MLA Format

"ERP Systems in the Small Business" 11 June 2012. Web. 09 December. 2023. <>