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Strategic Information Systems 9 Strategic Information Systems Student Name

   

Added on  2021-05-31

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Strategic Information Systems 1Strategic Information SystemsStudent nameCourse TitleProfessor’s NameUniversityCity and StateDate

Strategic Information Systems 2Part 1 Introduction Integrated, responsive and streamlined words are common terms used in the description of what a company is supposed to develop to become profitable and sustainable regarding SMEs in the highly competitive business age. Over the past two decades, technology has greatly advanced in the field of Information Technology. Consequently, this has led to wide enterprise technology adoption enabling the development of enterprise resource planning (ERP) systems which are regarded as a key contributor to business transformation. Accordingly, ERP is known to bring splendid business returns in a more competitive market. As a result, for companies to run effectively, there is need for them to move towards effective information systems such as ERP. Unfortunately, SMEs are facing numerous challenges of integration with ERP solutions (Tarhini, Ammar, and Tarhini, 2015, p. 25). Thus, this forms the core reason for ERP dealers to provide ERP systems to SMEs. Hence they have begun to divert their efforts to target small businesses. This paper discusses how the vendors are striving to implement and deploy ERP systems for SMEs. The target of vendors is the SMEs market. Therefore, they are repackaging ERP systems to suit the functionality of SMEs. The primary objective of this paper is to determine the limitations based on the literature as well as other aspects that affect the acceptance and execution of ERP systems in SMEs which are the same in the perspective of Australia. Literature ReviewInitial research studies done with Australia SMEs have shown the significance ofhuman resource for ERP choice and execution as well as implementation as merely done. Thereason is that they use simple technology to fix problems instead of taking it as a strategicbusiness venture. Seethamraju (2015) notes that with the progressive latest technology such

Strategic Information Systems 3as cloud computing, it is essential that the process is revisited because the constraint expensesand other factors differ by a huge margin (p. 479). Despite the fact that most of thecontemporary study in Australia has been based on ERP implementation in higher educationERP is stillyoung now is when it is advancing paths in business sector. According to Sedera,Gronau, and Sumner (2015), the present turbulence in the business setting it is mountingmuch pressure on companies to become sure that it is possible for them rapidly attainconsumer needs and wants as well as making of sound and timely decision on their resources.Thus, most of the corporation in Australia have been forced to employ ERP system assubstitute for a unified information system support functions. Also, these companies haveimplemented a packaged ERP solution for creating an integrated core system instead ofoutmoded system development. SAEP an internationally recognized ERP vendor has reportedmore than 70% of Fortune, over 100 companies that have already installed or are in theprocess of installing the R/3 system. Therefore, the ERP market share in Australia isconstantly advancing with approximately 5% yearly, and it is moving towards the extendedERP solutions like CRM and SCM. Regardless of ERP dealers recording a lot of successful cases, different stories havealso emerged concerning the failed or out-of-control projects. For example, it has beendebated that the bust of FoxMeyer was facilitated by its adoption of ERP system. Anotherexample is Mobil, Europe which makes use of a colossal amount of money but in the end it isrejected since its merger associate refute the idea to adopt ERP system. Venkatraman andFahd (2016) note that most corporations such as Dell Computer, Dow Chemical, andFoodland supermarkets have gone through a lot of challenges in ERP implementation as wellas stabilization due to the haphazard training organization that takes the advancementsnegatively. These corporations concentrate on training as the most significant element insteadof integration. Indeed, Australian firms have suffered from similar difficulties in the

Strategic Information Systems 4introduction of international standard practices such as new information system needs andunit measures to make a comparison between their old-style native practices as well as theinitial IT level of legacy systems. Ultimately, implementation of ERP demands numerous investment in solution licensecharges and hardware in addition to consultation cost for the goal of ERP knowledgedistribution solution functionalities and project management (Ram, and Corkindale, 2015).But it may not be possible to realize the substantial intention of the business operations whichplace companies at a point of missing strategic business chance. Overstressing on theoutstanding justification and implementation of these issues and lack of understanding onERP potential as well as an influence to the organizational performance in the ERPimplementation lifecycle. Particularly the post-execution stage is very crucial to keepreceiving constant improvement. Domestic and International SMEs ContextInternationally companies are adopting a wide range of descriptions for small-mediumenterprise (SMEs) but the primary difference is the size choice and the threshold used in measuring. Most companies use balance sheet, size of the workforce and total revenue to define SMEs (Ahmad, and Malik, 2016). In Australia, diverse corporations use dissimilar measures to describe SMEs, for instance, the Australian Stock Exchange (ASE) classify entities that have less than fifty workers as SMEs (Chong, 2014, p. 44). Contrary to big organizations, SMEs depend upon other companies for services which include training and marketing. Therefore SMEs are vital components of the economic policy and particularly experts in developing and creation of employment. Consequently, with the implementation ofERP system, it is view as a significant plan towards creating new robust bookkeeping practices which will also aid in the enhancement of the survival of SMEs (Chong, 2014, p.

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