This is a case study of a Brazilian industry operating in Portugal. It is about presenting a method of how to implement ERP software in an SME (small and medium enterprise) company, its difficulties, successes, and suggestions for improvement. It is expected that an implementation of management technological tools will bring beneficial financial results in SME business progress. An implementation of technological tools for management brings homogenization and accelerates production of management information, which are essential for SMEs to have access a more competitive rate operations and reduce default risk. In the development of this work, a framework for ERP software implementation was used, associated to a research method called design science research (DSR), which allowed a deepening of issues related to design and project planning, execution, change, management of culture change, and perceived reflexes after ERP implementation.
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The objective of this case study is to present a method for implementing ERP (Enterprise Resource Planning) software in a Brazilian company operating in Portugal, classified in the SME (Small and Medium Enterprises) category. The way in which the change process was adopted was explored, with the reflexes in possible improvements in the economic result after the implementation of the tool, as well as the adherence of the participants to the change process (Martins & Theóphilo, 2017).
Small and medium-sized companies have difficulties in obtaining reliable information about their enterprises (McAdam, 2012). The lack of financial and professional resources, associated with the lack of time and excessive work of entrepreneurs and employees, contribute even more to this difficulty (Junior, 2010). Management tools, such as ERP software, are expensive and difficult to implement for this type of company, which makes them use low-cost tools, such as spreadsheets, or implement ERP software incompletely or incorrectly (Pell & Bridge, 1998).
The present work seeks to contribute to the improvement of this environment, presenting in a practical and didactic way, the steps used to implement a technological tool, such as ERP software, using an implementation framework (Loh & Koh, 2007), detailing the phases, difficulties and solutions encountered during the process. It is expected that, when implementing a management tool, of the ERP type, properly calibrated to the reality and capacity of an SME, we can obtain positive results, as well as contribute to the robustness and perpetuity of these enterprises (Pell & Bridge, 1998).
According to Muscatello, Small, and Chen (2003), there are several expected benefits when deciding to implement an ERP software, among which, we can mention: improvements in the integration of processes, improvements in customer satisfaction, reduction in the time of order processing, invoicing and shipping of goods or products, reduction in inventory time, as well as improvement in the efficiency of the company as a whole, which can bring about an increase in the economic result. Such improvements bring very expressive results to SMEs, due to the difficulties and limitations inherent to these companies.
In this context of benefits obtained by SMEs through the implementation of controls and business management, Riva and Salotti (2015, p.305) demonstrate that the improvement in the financial statements has very positive effects on the granting of credit to such companies. These authors emphasize that a set of more reliable, more transparent and closer to the reality of companies, financial statements can interfere in bank credit granting decisions.
There are many reasons why SMEs have moved away from implementing ERP software. Among these reasons, we can mention the existence of a very large number of companies that spend a considerable amount of resources and end up not reaching the expectations generated at the time of closing the implementation contract, or they end up abandoning the tool altogether, which it is very impactful for such companies, due to their limited resources (Muscatello et al., 2003).
Silva (2012) highlights the importance of bilateral relations between Brazil and Portugal, especially those linked to trade, industry and the provision of services between these two countries. It also highlights the significant increase in the number of Brazilian companies operating in Portugal, and the impact on the economy and professional relationships. Likewise, Tavares, Pacheco and Pires (2016), and Machado, Grzybovski, Teixeira and Silva (2013), also highlight the importance of this type of company for Portugal, as well as the reflection that actions to improve controls and business management have promoted in maintaining of jobs and the economic and financial sustainability of SMEs.
In the following sections, we will present the main theoretical references and the application of the method to implement an ERP software in a Brazilian SME operating in Portugal and evaluate the impact of this change on the quality and homogeneity of the economic result of this company, especially on the gross operating margin.