Challenges Faced by SMEs During ERP Implementation

Enterprise resource planning solutions have long been a topic of debate in many organizations. Whether a business is big or small, it is necessary to manage every resource—from employees to strategy, efficiently. While the need for an ERP system can be debated, there is no doubt about its capabilities and benefits.

However, SMEs still face ERP implementation challenges that range from lack of awareness to employee resistance to new software. Following are some of the ERP implementation challenges that most SMEs face:

ERP Implementation Challenges for SMEs

Limited ERP Awareness

The biggest challenge of ERP implementation is the lack of awareness about different ERP solutions and vendors. Some companies continue to manage their employee resources manually through spreadsheets and are unaware of the capabilities of an ERP system and what benefits it can bring to their organization. This affects business growth because the more time they spend searching for and finalizing an ERP solution, the more opportunities they lose.

Misunderstanding

Along with lack of awareness, there are misunderstandings about ERP systems too. Many SMEs think that ERP solutions are only for large companies and they will not be able to afford the costs of implementing and maintaining an ERP system.

Lack of Resources

Not many SMEs have an IT team or person responsible for implementing and managing an ERP system. They have no one to take guidance from and doing it themselves seems to be a burden for these SMEs.

However, some ERP solution providers can help such companies by implementing and managing their ERP systems for them. These consultants will take care of maintenance and resource allocation as well.

Financial Worries

Having a bootstrapped budget is common for many SMEs. They have limited expenses and generally cut ERP solutions to save costs. However, companies need to realize that the upfront investment to implement an ERP solution can pay them huge dividends in terms of business growth and increased productivity in the future.

Team Orientation

Most SMEs are unstructured and their employees are not very comfortable with digitalization and learning new solutions from scratch. Getting a team motivated to attend training and learn an ERP system can be a tiring and time-consuming process. With limited budgets, training is also not very thorough and employees are left to do most of the research and learning part themselves. This makes them discouraged towards new solutions and delays complete integration.

With some knowledge about the challenges in ERP implementation, SMEs can arm themselves to face them efficiently. Some businesses are not focused on technology but need technology to increase their profits. A powerful ERP solution like SAP Business One, created by SAP's ERP leaders, can help them achieve their targets. Therefore, it is important for such companies to carefully analyze the benefits and challenges of ERP implementation and whether it will bring benefits to your organization. There are several ERP solution providers too from whom they can consult about the entire process.

PT. Sistem Anugrah Prima can help SMEs implement SAP Business One in their organizations. We are an award-winning SAP partner with years of industry experience implementing SAP B1. We remain focused on providing simple, practical solutions that users can understand and use easily. With a proven track record of working with multiple customers across multiple geographies, we are a trusted partner for any ERP implementation need.

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