Myth buster - ERP is only for big companies

 

So what is the difference in the way big companies work and how small companies work? 

If you think of it, all the business processes and requirements are the same. All types of companies have sales, purchase, accounting, inventory, taxation, salaries, etc. The process and cycle for each of these areas is almost the same, irrespective of the company. The only obvious difference is that in the big companies the volume of transactions is high. With multiple locations and different people playing different roles, the complexity involved in co-ordination and reconciliation is high too. Whereas for small companies most likely one person handles multiple functions. So more relevant here is when does a company need an ERP?

You can’t define a hard and fast rule as to when is it a good time to go for an ERP. Systems and processes are required by all, big or small. The perfect time is when you realise you have outgrown your existing software. 

Some of the advantages of starting early with an ERP : 

  • In smaller companies the implementation is easier as the number of people involved are lower. 
  • Time and effort involved are lower as it’s simpler to put a lesser number of people to adapt to a way of working.
  • Having defined processes and ways of working improves productivity.
  • Centralised data is available for all departments and functions. 
  • Same data being shared across departments is reliable, easier to manage and time saving. 
  • Reconciliation of data is not required.
  • With processes in place, expanding and involving more people is much simpler. 
  • You get the competitive edge when you have all your business processes in place and accurate data available from a reliable ERP software. 
  • For companies with inventory it’s better monitoring as expanding inventory levels are very expensive. This in turn leads to better planning and resource management. 
  • The return on investment is much higher in an upcoming organisation as the above points fall in place and make it easier for you to expand your business. 

Today the barriers to getting an ERP are negligible as ERPs are available on the cloud, so the investment and running costs are much lower. There is no specific readiness requirement. It is as simple as connect and login. 

The benefits of an ERP are many and any size of company can take advantage of the same. Predictions say that is 2020, SMEs will have much higher budgets for ERP software.

 

Myth buster - ERP is only for big companies

 

So what is the difference in the way big companies work and how small companies work? 

If you think of it, all the business processes and requirements are the same. All types of companies have sales, purchase, accounting, inventory, taxation, salaries, etc. The process and cycle for each of these areas is almost the same, irrespective of the company. The only obvious difference is that in the big companies the volume of transactions is high. With multiple locations and different people playing different roles, the complexity involved in co-ordination and reconciliation is high too. Whereas for small companies most likely one person handles multiple functions. So more relevant here is when does a company need an ERP?

You can’t define a hard and fast rule as to when is it a good time to go for an ERP. Systems and processes are required by all, big or small. The perfect time is when you realise you have outgrown your existing software. 

Some of the advantages of starting early with an ERP : 

  • In smaller companies the implementation is easier as the number of people involved are lower. 
  • Time and effort involved are lower as it’s simpler to put a lesser number of people to adapt to a way of working.
  • Having defined processes and ways of working improves productivity.
  • Centralised data is available for all departments and functions. 
  • Same data being shared across departments is reliable, easier to manage and time saving. 
  • Reconciliation of data is not required.
  • With processes in place, expanding and involving more people is much simpler. 
  • You get the competitive edge when you have all your business processes in place and accurate data available from a reliable ERP software. 
  • For companies with inventory it’s better monitoring as expanding inventory levels are very expensive. This in turn leads to better planning and resource management. 
  • The return on investment is much higher in an upcoming organisation as the above points fall in place and make it easier for you to expand your business. 

Today the barriers to getting an ERP are negligible as ERPs are available on the cloud, so the investment and running costs are much lower. There is no specific readiness requirement. It is as simple as connect and login. 

The benefits of an ERP are many and any size of company can take advantage of the same. Predictions say that is 2020, SMEs will have much higher budgets for ERP software.

 

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