P.D.Deshmukh

Dr. V.R.Kalamkar

Dr. G.T.Thampi

Abstract

Enterprise Resource Planning (ERP) implementations in small and medium scale enterprises (SMEs) are getting popularity in India. There is a sheer need to investigate factors affecting cost related aspects in SME specific, ERP implementations. This paper systematically investigates effects of training, project management, hardware and software, skills of workforce and top management's support on cost aspects. For investigating the effect of these parameters data is collected from 95 SMEs in India. Factor analysis is carried out to ensure different types of validities and uni-dimensionality. Further effect of each factor on cost aspect is analyzed with the help of regression model. This paper clearly gives insight about relative importance of various factors affecting cost aspects so that ERP systems can be implemented to minimize cost with maximum benefits.

Keywords- ERP, Small and Medium scale enterprices (SMEs), Cost Aspects in ERP