What ERP Means for Small Business and Why Do You Need It?
How often do you ask yourself “to ERP or not to ERP?”
Every time when you are calculating company expenses and put together results with other stuff you find yourself dreaming about Harry Potter Wand. At best, you switch from system to system, or at worst, you delve into thousands of spreadsheet lines. Does it sound like your monthly routine? ERP can be a lifeboat to keep the company on track.
When it comes to ERP software, at first sight, you may have various choices available in the market, but ERP implementation is a challenge. The latest research shows that the average total ERP implementation costs anywhere from 4% to 5% of a company’s annual revenue. That’s why adopting ERP for small and medium businesses (SMB) becomes a real headache due to the lack of budget and system complexity.
The truth is, over the last 10 years, ERP systems have done little to help small businesses plan and manage. It’s a common misconception that ERP is suitable only for enterprise-level companies, in today’s landscape no business is too small to use resource planning systems. Enterprise Resource Planning needs rebooting.
Mission Possible: One System to Track Your Company Heartbeat
According to the Deloitte research, 80% of global professionals say ERP is critical to their business, but one-half says the performance of their current ERP system is adequate or basic.
We should rethink how ERP tools are supposed to act. Whether you are a new manager of a small company or a CTO of a corporation, you want to be able to say: “ I use only one system to manage all my business processes: assets, expenses, inventory, payroll, finance, people, and recruiting. It’s easy to use and connect to all the other tools that I use every day. ”
“The new way to think about ERP software: You are not managing resources, you’re managing company health.”
A company is a living being, and the nature of the business management can change in a heartbeat. Every internal interaction, even a smaller one, affects the whole organization on all levels, especially if it’s SMB. Your future ERP system needs to be agile, not only control all the resources, finance, and inventory but also intelligently linked data, predict upcoming issues and crises.
New ERP Requirements
As an owner of a small company or startup, you are wearing several hats, and time is your most valuable asset. A good ERP choice will replace business management tools such as expense management, assets management, accounting software, payroll and invoicing, password storing, recruiting, and human resources systems. ERP is a key to the automation of business functions, allowing you to spare more time for sales and business growth.
The goal is to move ERP away from:
- A long and expensive implementation process
- Lack of connection between ERP modules and data
- Complex and inefficient interfaces
And move it towards:
- Dynamic planning and management of billable resources
- Affordable and easy to use
- Effectively supporting business changes or grows
The point is, Resource Planning needs to move from transformation to reinvention. ERP should stop being associated with clunky, slow, and complicated systems. Owners want to see an ERP as a flying, flexible system, which will have the highest level of user experience. Moreover, it needs to be agile, to adapt and support at its best any business changes or needs. Because SMB companies will never stop rebooting, won’t they?