In today’s business environment, all companies can benefit from an Enterprise Resource Planning (ERP) solution, no matter how small. Enterprise resource planning (ERP) solutions are available to small businesses (SMBs) at reasonable costs and with high functionality, enabling SMBs to act like enterprise-scale businesses.
Enterprise resource planning (ERP) software is a strategic tool that helps small and midsize businesses (SMBs) integrate and synchronize all their functions into streamlined business processes. Enterprise resource planning (ERP) is the most advanced and sophisticated expression of business and information technology integration.
Enterprise resource planning (ERP) is a system used by small and medium-sized businesses (SMBs) to automate tasks involved in performing business processes such as order fulfilment, payments, material receipts and invoicing. ERP makes the same data available to all SMB functions immediately so that all departments can work together more efficiently. A renowned research firm predicts that although awareness of and current use of enterprise resource planning (ERP) systems is high in large organizations, small- to medium-sized businesses will fuel future growth.
The market for ERP systems for Small and Medium Businesses (SMBs) is immense, given that there are over twenty thousand SMB companies in the United States alone. A survey by researchers revealed that only 35% of small and medium-sized businesses (SMBs) are aware of the Enterprise Resource Planning (ERP) concept, compared to over 80% in large organizations. Larger organizations can afford to implement ERP systems entirely because they have the financial money to do so. However, this situation would be risky for any small or medium-sized enterprise.
Implementing an ERP system for small and medium-sized businesses would be considered on the following factors:
- The number of departments in any small business
- The cost-effectiveness of ERP implementation for small and medium businesses
- Whether the investment in ERP solutions would yield a profitable return for the small- to medium-sized business.
The last factor mentioned above is of prime importance to any small or medium-sized business (SMB). Small-scale enterprises often implement ERP software for departments in which such systems are necessary. Once the small- to medium-sized business becomes profitable and grows, it can gradually extend the enterprise resource planning (ERP) system to other departments. Thus, implementing an ERP for small and midsize businesses can be done in stages.
Strategies for Successful ERP Implementation in Small and Medium-Sized Businesses
When evaluating ERP systems for small and medium-sized businesses, factors include how well the software fits with existing business processes, how flexible and scalable the software is, and whether it is easy to use. Other issues SMBs should evaluate are the need for upgrades and customizations to ERP software.
To implement an ERP system successfully, small and midsize businesses should focus on the following issues: hiring a cross-functional team and obtaining top management support. It is essential to develop an effective and open communication system for employees, determine the level of customization needed for the ERP system, monitor project performance periodically, and evaluate project performance at regular intervals.
What are some of the benefits of enterprise resource planning for small-to-medium businesses?
Transparency: All relevant data can be shared and accessed by all departments in a small business. It eliminates the need to export data, resulting in fewer errors and increased productivity due to reduced human resources expenses.
Decision-making: Real-time data from an ERP system can be used for marketing, management, and accounting purposes, enabling SMBs to make essential decisions. Small and medium businesses can use ERP systems to track productivity levels and identify any issues that may affect them. With an overall picture of operations, business leaders can make effective decisions and respond quickly to changing conditions.
Productivity: Increased productivity and streamlined business processes allow small-business staff to manage an increased volume of business. It can help SMBs transform various facets of their businesses and overcome challenges involved in growth.
Faster: Acumatica Cloud ERP enables you to streamline business processes and deliver exceptional performance across critical functions, including procurement, production, sales and customer service. You’ll get a clearer picture of your business’s performance in each region.
Simpler: Acumatica Cloud ERP helps your teams perform their roles and follow their preferences and workflows. This ERP offers secure cloud and mobile access to business information, streamlining data-management tasks.
Flexible: Acumatica Cloud ERP can be customized to meet your industry’s specific needs. You will ultimately control your company’s IT strategy as an added benefit.
Acumatica’s ERP software can adapt to your business’s needs, making it easier and quicker for you to run your company.
Vijay comes with a vast experience in ERP and enterprise solutions space with about 20 years of experience in various packaged application like Acumatica, SAP, Orion, Salesforce.com, SugarCRM and, SalesLogix.