Study On The Operational State And Effect Of ERP In Small And Medium Size Enterprises

Today E-business and ERP are applied widely in business. In more and more small and medium size enterprises ERP is greatly needed to improve the management. Yet ERP project is a complicated project and is risky of being used. Limited by current conditions, the effect of ERP in small and medium size enterprises is not satisfactory. In view of the background, the thesis is to answer the following questions:Why isn’t the system feasible in China while it works well in foreign countries? What is the operational state and effect of ERP in small and medium size enterprises which is the most vital part in national economy? What are the risks of supervision and evasion when implementing ERP? What should we do to make good use of ERP? The thesis is to find an ideal way to apply ERP in Chinese small and medium size enterprises.Based on the study of documents, cases, systematic analysis and interviews, the thesis explains the principles of operation of ERP and its historical development, carefully illustrates the present situation and problems of applying it in Chinese small and medium size enterprises and explores the necessity of applying ERP in Chinese small and medium size enterprises. The thesis analyzes and studies the case of GaoKaiTe Machinery Plant, by which the author conveys the advantage and disadvantage when applying ERP and deeply anatomizes the reasons to the problems and emphasizes the key ingredients to success. Meanwhile the interviews with managers in GaoKaiTe Plant, practical operators of the system and software provider manifest the influence of applying ERP in the enterprises. Thus the thesis is to focus the far-reaching and tremendous influence of applying ERP system to small and medium size enterprises. The thesis is to point out that only when ERP system is put more emphasis by the leaders and all the staffs and some basic works such as business processes, data entry and technician training are well finished, can it be carried out smoothly. At the same time, the ERP system also needs the accuracy and completeness of data and the building of ERP teams.