CRITICAL REVIEW OF STRATEGIES FOR REDUCING ERP FAILURE IN SMALL AND MEDIUM ENTERPRISES

Abstract

            Enterprise Resource Planning (ERP) systems have become crucial for enhancing business processes and driving digital transformation, especially in Small and Medium-Sized Enterprises (SMEs). While larger enterprises have traditionally led ERP adoption, SMEs are increasingly adopting these systems as costs decrease and technology matures. However, ERP adoption in SMEs comes with unique challenges, including limited financial resources, insufficient IT expertise, and resistance to organizational change. This article reviews the key failure drivers in ERP adoption for SMEs, focusing on the digital transformation process encompassing technology, processes, and organizational adoption. The article also discusses strategies for mitigating these challenges, emphasizing the role of organizational commitment, training, and alignment of business processes with ERP systems. By addressing these factors, SMEs can enhance their chances of successful ERP implementation, leading to improved efficiency and competitiveness