Thailand has been found to be fully aware of logistics and supply chainmanagement in the past few years. It has also promoted a concept of small and mediumenterprises (SMEs) across the country to sustain and stimulate economy growth. Thecooperation between governmental and banking sectors has assisted the private sectors,especially SMEs. Nevertheless, a few numbers of Thai SMEs have consideredinformation technology being implemented in their organizations. This includesmanufacturing resource planning (MRP II) or enterprise resource planning (ERP)software that is anticipated to improve product’s quality, work’s productivity, orcustomer satisfaction. Enterprise resource planning (ERP) is a system being developedfrom MRP II that has been partially used in Thailand. It is an umbrella system that tiestogether a variety of specialized systems. Recently, the extended ERP system has beenpromoted that is referred to as a collaboration system of different stand alone systems.This system is utilized in cooperation with E-business and E-commerce. With theimplementation of this multi-module application software in Thailand, external andinternal business activities could be efficiently and effectively integrated. The purpose isto ensure that the operations will be under the same information system. The researchstudy presented here develops a theoretical model, provides a profound comprehension ofsuch limitations, as well as seeks opportunities to expand the use of the extended ERPsystem that has gradually spread from Thai manufacturing sectors to service sectors.Implementing the extended ERP system has been proven to be a real challenge for manycompanies that are likely to become a key success of global competitive advantage.