7 Signs That Your Small Business Needs an ERP Solution
What the Hell is an ERP solution and why in the world would my small business need one? ERP solutions demystified, read on.
Technological reforms impact the business landscape and offer better functionality, convenience, productivity, and management. Many businesses use an ERP system to help improve these business performance features.
Most companies, especially the bigger industry players are quick to adopt changes in order to keep the momentum going without any interruptions.
Today, a majority of successful organizations have either implemented or are in the process of adopting ERP. Thus, it becomes imperative for the small and medium businesses to embrace the latest technologies in order to stay abreast amidst competition.
The decision regarding the integration of new technologies into the existing infrastructure is a big one. It can impact the main processes, causes disruptions in the workflows, complicate things and even burden the employees – not to mention the initial cost.
However, small businesses simply cannot overlook ERP solutions and the benefit they can provide.
If you overlook them then, you actually lose the chance for enhancement of the productivity, agility, and effectiveness of your businesses processes. Thus, it is imperative to adopt advanced solutions.
One such solution is an ERP system and we’re going look at key indicators to help you determine whether or not implementing one is right for you.
What is an ERP?
ERP stands for Enterprise Resource Planning.
It is considered as the backbone of modern-day businesses. It is a database management software with built-in analytics that helps in managing production, orders, and inventory of a business.
Besides these three things, ERP facilitates management of resources like materials, manufacturing, orders, and revenue between the stakeholders. An Enterprise Resource Planning solution can be used by any industry including retail, banking, pharmaceuticals, steel, chemicals, concrete, and agriculture.
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ERP software streamlines the business processes.
It is a common misconception that small businesses cannot opt for an ERP as they cannot afford it.
However, this is not true.
In the past many small-scale businesses didn’t have the resources, lacked technical support, whereas others lacked the funds that were required to opt for an ERP.
Today, ERP has become viable to many small-scale businesses allowing them to implement Enterprise Resource Planning software – just like the big players. No business is too little for an ERP system. In fact, ERP software facilitates businesses to reach up to the level of industry players.
Why would a small business use an ERP?
According to Panorma’s Report on ERP Systems and Enterprise Software:
Reasons for Implementing ERP:
- 49% – to replace out-of-date ERP software
- 16% – to replace home grown systems
- 15% – to replace accounting software
- 20% – to replace non-ERP systems / had no true system
- 35% reported implementation costs of 1- to 3-percent of their organization’s annual revenue
- 20% reported implementation costs of 3- to 5-percent of their organization’s annual revenue.
- On average, organizations spend 6.5-percent of their annual revenue on their ERP project
If you are still wondering whether an ERP is right for you, then below are 7 signs that indicate it’s time to implement an ERP solution.
If your small business displays any of these sign, you should take a look at ERP software.
1. Unmanageable Data
Be it finance, sales, manufacturing or even marketing, large chunks of data are generated from every section.
At times, data becomes quite confusing, tedious and a time-consuming process to access or transfer this data to different departments. If you are facing problem in managing the data, then you should go for ERP. By making use of an ERP solution, all such data can be automatically shared thereby eradicating administrative struggles and fuss.
2. Inadequate Insights
Businesses need useful insights in order to facilitate the planning of effective growth strategies.
It is difficult to run a business on a limited amount of data. In fact, mining effective insights from the only data you have are quite perplexing. Making conclusions based on only one side of the matter leads to illogical decision making.
Thus, you need ERP software for better insights. An ERP fetches all the data on one platform thereby making the data easily accessible. It allows you to see the merits and demerits and visualize them while moving ahead in the process.
3. Lack of Collaboration among various departments
We all know that sales and marketing are only effective when collaboration between the two is at it’s best.
But what happens when the data of each department is restricted to itself?
It makes it difficult for the team to reap the benefits of the resources available. This calls for an ERP software. It is a single software that fetches data from all departments every time the team needs it. This would reduce the hurdles and make the environment suitable for innovation.
4. Unsatisfied Customers
The only way to impress customers is through highly-responsive and quick customer care service.
Customers want all their queries to be addressed in the least amount of time.
Not just that, but your answers, must be convincing and correct.
So, in order to be able to make an impact on your customers, you must be equipped with well-organized data. If your data is already divided into different sections and not easily accessible, then you’ll always remain short of the right answers. At the same time, you’ll keep the client waiting to gather data.
Here, using an ERP will boost your services as it will plan your data well and also make it accessible.
5. Expensive and Unskillful IT
Managing different IT teams for different departments is a complete mess.
It only leads to unnecessary expenses and unexpected drawbacks. Many times, you might face technical failures despite paying extravagantly to the IT staff.
An ERP solution will make things interoperable and it won’t even require expensive maintenance.
6. Improper Inventory Management
When the different departments are disconnected, inventory management becomes difficult. It even becomes difficult to calculate the exact number of orders and track the available stock.
Keeping up with an index is really necessary for the betterment of your business and that is why you need inventory ERP software.
An ERP software will provide sufficient data to maintain the stock properly and keep your customers happy.
7. Restricted Team
Technology brings your team members together no matter where they are located.
If your team is restricted simply due to location – your business is suffering.
They should get the liberty to work from anywhere for better productivity.
Therefore, the database and applications must be movable,only then can they add value. A cloud ERP solution allows every team member to enjoy the benefits of ERP anywhere, be it a hotel room, car or a plane.
Cloud ERP allows convenience and easy collaboration.
If you are serious about your business then you should take ERP seriously. These 7 signs are a clear indicator that your small business may need to implement ERP ASAP.