Abstract

Problem statement: Enterprise Resource Planning (ERP) systems have such an important role in global success and become more complex over time. Small Medium Enterprises (SMEs) follow large enterprises in using ERP systems while ERPs have not addressed the SME's specific challenges such legacy systems as the main assets in SMEs that have not considered in ERP solutions as well as special situation requirements, budget and employee 's knowledge. Approach: This study demonstrates and discusses most important criteria of ERP-SME compatibility that extracted based on literature review and survey results. So that a cle ar view of ERP success in SMEs is presented. Service Oriented Architecture (SOA) is evaluated according to survey that has been done within number of SMEs to reveal its power in addressing SMEs' challenges based on extracted criteria and systematically comparison. Results: The results of this study provide SMEs with valuab le analysis that will guide them to make correct and effective changes in their curr ent information systems. According to analyzing the SMEs criteria and ERP characteristics a set of poin ts as guidelines of information systems implementation in SMEs were presented. Moreover, a systematically comparison of suitability of SOA on extracted criteria has been done. Conclusion: Evaluating results of the ERP systems that are bas ed on object oriented versus SOA based systems will be us eful to gradation the SMEs performance.

Highlights

  • Small Medium Enterprises (SMEs) are biggest portion of each economy (Levy and Powell, 1998)

  • Any solution should be consistent with their constraints, for example due to lack of employee knowledge in SMEs, designing the business processes is a challenging task because the majority of the standards are compatible with large enterprises, it is essential to select a smaller scale method to Business Process Modeling (BPM) in SMEs (Nielen et al, 2010)

  • Intensifying of applying IT tools in SMEs depends on their effectiveness and benefits that should be tangible in short time by enterprise and the managers themselves (Nach and Lejeune, 2008)

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Summary

Introduction

Small Medium Enterprises (SMEs) are biggest portion of each economy (Levy and Powell, 1998). The number and importance of SMEs increased in last decades (Levy and Powell, 1998). Number of employees is one of the major factors of SMEs as a small enterprise has no more than 100 employees and on the other hand a medium size enterprise encompasses no more than 500 employees. SMEs tends to use information systems as a tool to improving their business development as well as participating in competing with other companies. Intensifying of applying IT tools in SMEs depends on their effectiveness and benefits that should be tangible in short time by enterprise and the managers themselves (Nach and Lejeune, 2008)

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