Sample Essay

The requirements of an ERP differ a lot when it comes to implementation in SME and large organizations.  Larger organizations, have formal management style, have a known strategy and set definite goals at all levels of the organization. They also have known competitors and conduct business in an environment that is mostly dominated by a single or two market leaders.

Hence their business processes are standardized and the flow of information through these processes flow a particular pattern. One the other hand, SMEs are usually much more informal and follow unstructured management style. They also usually do not have a fixed definition of strategy as well. This permits them to be highly flexible and responsible in order to compete in an environment which is very competitive and dynamic.  Furthermore, due to their extensive presence and catering of a wide range of customers, large organizations have processes that are usually complex and often rigid. Any change to any of such processes also requires extensive modification of ERP modules.  However, SMEs have much simpler business processes which are also easy to change hence require an ERP to be very flexible and customization friendly.

In addition large organizations have the luxury to commit massive amount of financial and human resources to an implementation while they can also afford supporting processes that are required to for successful adoption of the newly implemented system (for example change management). SMEs, on the other hand, face severe resource restriction, both in terms of finance and human resources. This lack or shortage of resources implies that SMEs require a solution that is not only cost effective but also requires less time and personnel commitment for its (Grant, 2003).

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