Economic Analysis Of The Present Situation Of ERP Application In The Small And Medium-sized Enterprises Of China

As the most rigorous power in the modern economic life, small and medium-sized enterprises have the non-negligible roles and status for any country. In China, the small and medium-sized enterprises are continuously making progressive contribution to the national economy, playing more and more important roles especially in some aspects such as enlarging jobs, meeting citizens'diversified and individualized demands, realizing the social specialized coordination, cultivating entrepreneurs and making technological innovations, etc. Therefore, the study of development of the small and medium-sized enterprises is of prominent and great realistic significance at present and even in the future. In this paper, the theoretical discussion is given to the present situation of ERP application in the small and medium-sized enterprises of our country.ERP, the abbreviation of Enterprise Resources Planning, was originally presented by the US Gartner Group in 1990s. According to the definition of the Gartner Group, ERP is the management platform using the systematic management thoughts to provide the decision-making operating measures for the decision-making level and employees of the enterprise, based on the information technology. Its basic thoughts , based on the information technology, is to take computer as the tool to simulate the production and management of the enterprise and carry out the effective management and control of the information flow, logistics and fund flow of the enterprise. It reflects the requirements of times rationally allocating resources of the enterprises and maximizing the creation of social wealth, becoming the corner stone of survival and development of the enterprise in the information age.Compared to the large enterprises, the small and medium-sized enterprises, with few funds, lack of talents and backward management, closed to information, must make use of the modern information technology to realize the unity of scientific management and technology if they want to survive and improve their own competitive power. It is the ERP system that can help these enterprises achieve this objective at present. The system will help the small and medium-sized enterprises rapidly expand business space, make up for the serious lack of resources of the enterprises and impair the advantages of the scale economy so as to obtain the opportunities of fair competition against the large enterprises standing on the same scratch line.Viewed from the situation of the small and medium-sized enterprises carrying out the ERP at present, it is not optimistic. The implementation ratio is low and the success ratio of implementation is lower. The reasons come from two aspects. First, viewed from the enterprises themselves, they have no adequate understanding of ERP. Second, the management system is nonstandard and the business flow is disordered in the small and medium-sized enterprises in addition to funds, the biggest obstacle for these enterprises to implement ERP. Viewed form the external environment of the enterprises, the laws and regulations of the external market of the enterprises are imperfect, the ERP software products are very immature, the social service system of the enterprises are imperfect and the policy supporting strength of the government is still inadequate. Such a series of factors seriously prevent the successful implementation of ERP of the small and medium-sized enterprises.Therefore, we can take the successful experience of implementation of information technology of the small and medium-sized enterprises in the foreign countries for reference and combine the actual situation of the small and medium-sized enterprises of our country to explore and seek the strategies of resolving the problems in the process of ERP implementation of the small and medium-sized enterprises of our country. First, the problem of understanding of ERP of the small and medium-sized enterprises should be resolved. Second, the problem of rational use of the limited funds of the small and medium-sized enterprises should be resolved."Spend less money in successfully resolving more problems". Third, the system innovation of the small and medium-sized enterprises should be actively promoted and the modern enterprise system should be established. Fourth, the social service system of the small and medium-sized enterprises should be set up. Fifth, the social power should be coordinate and organized to jointly promote the informationization of the small and medium-sized enterprises. Finally, the supporting strength of the small and medium-sized enterprises by the government should be strengthened.On the whole, the ERP implementation is the effective approach for the enterprises to realize informationization, improve the management level and enhance the competitive power of the enterprises. The successful practice of some pioneering enterprises fully shows that the ERP implementation of the enterprise is feasible and essential. The enterprise should realize that ERP is not only software itself. The ERP implementation is equal to accept a management thought and mode. Its elite is accurateness, science and rationality. However, the management foundation of many small and medium-sized enterprises is relatively poor, there are many human factors in the management process and the decision-making actions such as use of the irrational decision making to replace the rational decision making and lack of scientific decision making are general at present. Such a present situation is destined to make the current small and medium-sized enterprises more difficult to implement ERP. However, under the joint efforts of the enterprises and all the social sectors, the ERP is sure to be applied successfully and promoted widely.