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SMEs: ERP or Virtual Collaboration Teams

Research Area: Small and medium enterprises Year: 2009
Type of Publication: In Proceedings Keywords: Virtual teams, Small and medium enterprises, ERP, Collaboration
Authors: Ebrahim, Nader Ale; Ahmed, Shamsuddin; Taha, Zahari
Book title: First Enterprise Resource Planning conference
Pages: 1-12
Address: Tehran, Iran
ISSN: 1735-5540
Abstract:
Small firms are indeed the engines of global economic growth. Small and Medium Enterprises (SMEs) play an important role to promote economic development. SMEs in the beginning of implementing new technologies always face capital shortage and need technological assistance. Available ERP systems do not fulfill the specific requirements of Small firms. SMEs has scarce resources and manpower therefore many SMEs don’t have the possessions to buy and operate an ERP System. On the other hand competition and competitiveness of SMEs have to be strengthened. This paper briefly reviews the existing perspectives on virtual teams and their effect on SMEs management. It also discusses the main characteristics of virtual teams and clarifies the differences aspects of virtual team application in SMEs. After outlining some of the main advantages and pitfall of such teams, it concentrates on comparing of ERP and virtual collaborative teams in SMEs. Finally, it provides evidence for the need of “Software as a Service (SaaS)” where an application is hosted as a service provided to customers across the web for SMEs as an alternative of ERP. It has been widely argued that ERP disadvantage in SMEs such as administrative expenditure and cost, isolated structure, severe lack of software flexibility, insufficient support of SMEs business and high operating cost, lead SMEs to use virtual collaborative team which is net work base solution.
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UPM - 09-12-2012, Research Tools I  - By: Nader Ale Ebrahim

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