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Nowadays enterprise resource planning (ERP) systems are mostly ready-made software packages, which raises the importance of the ERP system selection. For SMEs a good fit between company business processes and ERP system functionality is a top priority in ERP selection. However, SME companies’ resources are limited and quite often their experience and knowledge of ERP systems is inadequate. Current models of software requirement specification are too expensive and cumbersome for SMEs. Typically, these models are targeted at supporting the implementation process after the software selection. In this study we first present the characteristics of SMEs’ ERP projects and through case studies discuss how they could be evolved more effectively. We then propose a new advanced method for SMEs’ ERP requirement specification that includes operational, contextual and risk analysis. Together these analyses provide a complete in-depth description of company business process development, specify the requirements for the new ERP system, and identify the restrictions and risks related to the ERP project. The results of a case study in which the method has been applied, support further development towards a holistic and multidisciplinary approach in the ERP requirements specification process of SMEs.
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