ERP Choices for SMEs: Automation to Maximize ROI

The Fourth Discussion Point is Covered Under the Umbrella of Automation

Similar to the previous argument around agility, automation in ERP increased the SMEs competitive edge compared to other similar organisations and gained them ‘points’ when pursuing business opportunities with international counterparts, which mandated this out-of-the-box integration through ‘open standards’ and ‘best industry practices.’

This is in agreement with Elbardan, Ali, Ghonei (2015) comments on the principles and objectives of an ERP solution, which are to achieve standardisation, visibility, best practice, and integration.

Also stressed by Yoo et al. (2007), that ERP systems are provided from the top tier vendors with assumptions inherited from reference industries, countries and managerial interests.

It is well known and also by design that smaller ERP systems have lesser functionality, and the ability to expand and scaleup and may cost the SME severe customisation costs to achieve the levels of automation they were hoping for.

In thecase study-based research by Zach and Munkvold (2012), in all the four cases, it emerged that customisations needed to be carried out in the non-tier 1 ERP systems (all of them local solutions) these four different SMEs have adopted, to make up for the SMEs increasing demands.