The Issue of Implementing SAP Human Resource in Small Medium Enterprises

Enterprise resource planning (ERP) systems are increasingly becoming commonplace in the small and medium enterprise (SME) sector and are being viewed as one of the prime ways to achieve competitive advantage and to reengineer processes. ERP software is aimed at combining the disparate sources of information within an organization into a central database. Since each data element is populated only once it eliminates multiple data entry and ensures better data visibility within the organization. The ERP systems typically encompass all functions including finance, sales, Customer Relationship Management, accounting, manufacturing, payroll, etc. The apparent benefits and economically attractive initial price of the ERP systems has developed an increasing interest within SMEs which view these systems as a remedy to achieve competitive advantage. A large proportion of ERP projects end in failure and this prospect seem more likely and devastating for SMEs because of unclear objectives and a confused understanding of what and how any ERP system can help in achieving performance improvement and competitive advantage.