Do small businesses need ERP software?
- November 10, 2014
- Posted by: cemblog
- Category: ERP implementation
People generally have a wrong assumption that ERP solutions are meant only for large and well-developed organizations. But, the fact is that, it is not the size of the organization which decides the need of ERP system but the complexities of business processes within the organization.
With the availability of a lot of resources online to make your small organization equally compete with the giants in the industry, running a small business is trickier than a large or well-developed business. The complications and confusions in a developing firm are higher than a developed one. This creates an agitation and stress in small business owners and a muddle whether to opt ERP software to make the situation better. At the same time, the fear of ERP implementation failures and the cost of ERP implementation resist firms from arriving at a conclusion. Many are even unaware of the availability of ERP systems that are specially developed for small businesses.
Customers are the king of business in this era. Gaining customer satisfaction, obtaining new market, and understanding prospective customers’ needs are becoming a must for business growth. In production industry, the balance between the demand, production volume, inventory cost and profit are to be maintained for perfect business flow. Although these activities can be done using simple tools and by filling out surveys, utilizing a full-fledged ERP system customized for your business needs will have higher end advantages than that of the common tools.
Major challenges faced by small businesses and how ERP software assist you overcome it:-
Coping up with growth:
Small organizations struggle a lot to manage the changes in process and production volume during the growth phase. Coping up with these changes will definitely be a hard milestone to cross for any business. At this stage, businesses tussle to meet the growing customer needs and to obey increasing lawsuits. Implementing an ERP software will assist you through this stage and will turn your growth to be successful and long lasting.
Multiple and inefficient software programs:
Small businesses are usually involved in numerous manual processes for maintaining their data. Different departments within the organization maintain their data in different software programs or paper works. This demands maintenance of relationship with countless software vendors and retrieval of data becomes a time consuming process. The situation also leads to one more issue of multiple entries. Multiple entries of same data comprise time and resource wastage, and it also leads to manual errors at the time of entry.
Maintaining a single, accurate database with an ERP system will avoid all the above confusions and assist businesses with an advantage of accessing required data by all responsible employees, which turns the decision making process to be easier.
Maintaining a long term standard in business:
Businesses are always worried about maintaining growth and fame for a long term. But as a small business, serving large number of customers and making them satisfied, increasing the production with the available resources or increasing the manpower are tedious. But, ERP implementation helps in maintaining the inventory and human resource, and increasing the production, thus assisting organizations to maintain a long term standard and growth rate.
In addition to these, implementing ERP software also provides an opportunity to enter into numerous industries with an ease of maintenance of the data to improve the brand value as well. In simple, ERP system enhances the productivity, accuracy, flexibility and increases the profitability by providing an integrated and reliable business environment for small businesses as well.
Advantages of ERP implementation:
- Integrates data and processes
- Improved visibility over critical data
- Enhanced reporting
- Enable better decision making
- Reduced operational cost
- Improved compliance
- Strategic planning for building the future
ERP system offers numerous benefits for small businesses. However, certain risk factors are also associated with this ERP implementation. Small before should identify their priorities, manage change in each step of ERP implementation and allocate resources for training and project management, to reap the benefits of an ERP system to its fullest. The right ERP software chosen and a perfect step-by-step ERP implementation, can build a seamless foundation for your future growth, and ensure enhanced productivity, superior cost savings, and a better bottom line for your business.