To deepen the knowledge on enterprise resource planning (ERP) implementation in small and medium size enterprises (SMEs), this study identifies and assesses the main risks in ERP projects through a case study of three manufacturing SMEs. Various tools, standardised methods and techniques have been developed to help enterprises better manage their ERP projects. In this paper, the author introduces two risk management methods targeted for SMEs in their ERP implementation projects. By using company-specific risk analysis method (RAM), the critical risks of the ERP projects have been identified and assessed. Then, by using characteristics analysis method (CAM), recommendations of how to divide the ERP projects into manageable sub projects are given.

Abstract:This paper investigates the role of Enterprise Resource Planning (ERP) systems in the context of small and medium size enterprises (SMEs). The paper reports on research findings from a case study that has been conducted in 14 SMEs, operating in steel manufacturing and woodworking. By dividing the enterprises into three different groups; medium-sized, small, and micro enterprises, this study provides a richer understanding of enterprise size related issues in motivations, risks and challenges of ERP adoption.

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