The sky is the limit for the small and medium enterprises today. But climbing up the tree is no easy task. Besides; skill, diligence and vision, it requires state-of-the-art Information Technology tools to survive and thrive. There has been a tremendous change in the business environment in the last one decade, and the pace of change still continues to accelerate and corporations around the world seek to revitalize, for success in the 21st century. This paper explores ERP as a mode of strategic development for SMEs. It may tighten management control by bringing a new level of panoptic visibility to SMEs activities. There is need for finding better alternative to provide full-fledged information solutions without sacrificing facilities, at suitable costs to SMEs. The paper also proposes collaborative ERP on the idea of sharing ERP package by a group of SMEs.