A SYSTEM DEVELOPMENT METHODOLOGY FOR ERP SYSTEM IN SMEs OF MALAYSIAN MANUFACTURING SECTORS

Improvement in the effectiveness and competitiveness of Malaysian SMEs (Small Medium Enterprises) in the global market is very important, because these SMEs an essential role in the Malaysian economic growth. The ERP (Enterprise Resource Planning) is a significant tool to increase the effectiveness and competitiveness the SMEs. The ERP enhances the efficiency of the whole business operations in an organization and increase the optimal income. Nevertheless the due to various reasons the implementation of the ERP has not been successful in many organizations and hence its success rate of implementation is quite low. A lot of researchers have identified the factors that constitute towards the successful implementation of the ERP. It has been identified that majority of the SMEs tend to refrain from adopting the ERPs due to the cost and complex implementation factor. In this paper, the authors have developed and proposed an efficient methodology that enables successful implementation of ERP system in SMEs. The aim of this paper provides a platform to accomplish the objectives of ERP system. However for the purpose developing ERP systems to suit the needs of Malaysian manufacturing SMEs a new methodology is required. Hence this paper proposes a methodology that comprises two main methods: (1) preliminary study which includes two quantitative questionnaires, current status questionnaire and readiness assessment questionnaire; and (2) system development method which includes four phases that make up the ERP system development method are: analysis and definition, design, construction, and evaluation stages