ERP for small Business and Challenges of Deployments – User Prospective

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“Cost of ERP for small business change too much, now a day business not saying no to ERP due to Cost and this is good sign”

 

First question start with, if we really need ERP for our business or who need ERP in business? I think a more clear answer of this question and response of this question from your all team members or at least top to mid management members will guide you on the decision, that help you to make mind if the ERP is required for your business or it not required.

A Typical Billing Screen of Cofee Shop
A Typical Billing Screen of Cofee Shop

What‘ s in Name

We learn from lot of queries about ERP at Techzone that sometime business looking for ERP solution but we don’t feel that they need an ERP. In fact on those case I feel more important role of our sales team to let imbibe the information of what exactly ERP means and if your business structure required and ERP or not.

A typical Ecommerce business with lot of vendors, suppliers and Delivery of products by shipping using courier or private logistic is required ERP if the Process of Ecommerce is not fully automated. In the case  when there E-commerce solution designed in a manner that perform everything with automation, then the Company actually required a Business Management solution or small ERP. Why we are saying Business Management solution to small ERP Let me explain it more.

There is lot of benefit and advantage if your team size is of less than 200 and your team members not willing to go with ERP, you need to simply start with that we don’t need ERP but to improve our performance and monitor the impact of business in several front we need some Business management solution, either this can be a single solution with multiple department function get handled or we need something that is separate in deployment , however tightly integrated in one reporting engine or something.

When we say these kinds of stuff, the burden of ERP from mind is getting removed and your teams will happy to get integrated Business management solution in place. So make sure that yours case for implementing ERP or Business Management system clearly define. Hence it will save lot of time and energy for your company and impact your top and bottom line both together.

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The Journey of Process Streamline

The main concept of ERP is all about the management of business for the profit of business, and streamlines your process from decision making by will to by system. So we can safely say the next alternative name of the ERP solution can be a Business management system especially when the case is all about Small Business. Because we appreciate and feel very good about the small business owners who work hard to make brand value and create wealth and improve something in society that impact in short terms and long terms all together.

As each and every business even home based business somehow use the software of one kinds or another and they are using computers, internet and other technology to make business running.  So we think that every business is having the first right to use the ERP and this is equally important for your business like your cash flow or the strong management team.

To truly move forward as a business in a competitive environment, an organization must keep improving the progress that lead by technology and systems , as will gives significant cost savings and efficiency of business handling that again play role in improvements of bottom line and top line.

For all businesses, small and large, enterprise resource planning systems are a great way to scale and optimize departments and processes, resources and feel great with more controlled by system rather than the human.

The use of enterprise resource planning systems is present in all types of business organizations, from retail, manufacturing, Trading, Government Managements and service providers of all sizes.

When you will growing your business and scale up to next stage it is very important that you are already part of the process that handle the large stuff, the use of enterprise resource planning systems becomes a significant necessity. The use of an organized system allowing departments and functions to coordinate in real-time or set a backbone to handle all stuff in critical customer support and business delivery easily. Processes starting from sales, to order, to invoice, to receipt of payment all are often streamlined with the use of such systems. Increasing efficiency, decreasing potential for human error, and providing accurate and timely information are all benefits of having enterprise resource planning systems in place.

Though there is a seemingly overwhelming amount of choices when it comes to selecting enterprise resource planning systems to use for a business, one must analyze their own requirements and compare. The different software choices often have different strengths and focuses, as well as specializations for certain industries. There are ERP systems for all different sizes of businesses, made to satisfy different budgets with different feature-sets. The choice of ERP system is a critical one, not only for the significant initial investment, but the daily use the entire business will be relying on it for. There are many factors to weigh in, such as the cost-benefit analysis of having the system upgrade, or simply hiring additional company assets in order to make up for the inefficiencies currently attributed to not upgrading the enterprise resource planning system.

Key hindrance that ERP get ignored in the small business.

Some small business not able to think about the ERP for their business due to some of the key factors and we are here to give you solid reason why you need ERP for your business and there is no hindrance in the procurement even if you are smaller business or just startup.

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1 Cost of ERP is very high –

yes this is true in some case, but due to evolution of technology and long cycle of development of technology , now the solution is truly cost effective and even the solution is get financed for the business or you can opt for the monthly rental solutions.  If your business is very small and you going to buy an accounting software, a HR management software, a marketing platform and an ecommerce website, let put together all your requirements and budget for the same and start discussion with Techzone for the ERP.

You will get all of the above and more with the Techzone ERP solution and you never have to think about the budget or capital cost, as you will get interest free finance of the solution for 3 Years.

2 We have no resources for training or quality manpower

This is not a true reason, as the ERP solution will always come with free training and also the system is designed in a very simple manner for user interface, that the largest complicated task can be perform by anyone with simple knowledge of the computer operating

 

Market Share of ERP vendor- Excluding the smaller players
Market Share of ERP vendor- Excluding the smaller players

3 Suitable Products and vendor – Each team members and vendor push their own pack of ERP solution and it will really impact your decision making process. What is more important to understand that an ERP is processes drive your business, so our process of how to select your vendor for ERP and ERP product must be driven by merits?

We find it very hard to make selection of the ERP from a certain vendor because some company try to go by the name only and some company looking for cheap solution. In both the case they will be not compiling the merit list of Products or vendors, the decision is taken with price or brand name.

To make your ERP implementation successful it need to  be based on your requirements and expectation from the products. No Matter how small brand or company offer you ERP, the success of ERP is starting with right combination of Products, Customization, Hand holding in the Implementation Phase and Motivation for the users.

 

 

 

4 We Need Very Fast Delivery – We find that companies running without ERP for years and one fine day they start feeling the requirements of ERP and overnight they call all the vendor and start with feasibility and meeting. While the process to select the vendor and good products is really important and this is first step towards it. In the Process we advise to make a list of question , Pain area and what need to achieve from the services on shortest terms, Short Terms, Long Terms  and lifetime.

In our experience of more than 1500+ Discussion and request for ERP Implementation in 5 Years. We find one common and first question from the Team who evaluating the Vendor and products. The First question they ask us about the time of delivery for the solution, like.  How fast you can deploy the ERP for our company ? Each time I came across this question it gives me really deep smiles inside and outside and on most time I am not able to control it at all.

This is fairly ok to ask question about when you expect the deployment of ERP and a suitable time frame. But urgency of delivery always lead to commitment from vendor who didn’t even have any suitable experience on delivery of your complex business management system.

In your Process one of the best ERP product is also get dropped from your wish list due to time issue. so don’t make this a reason to drop the vendor who ask for more time. use more evaluation and based on those take your decision. since one time delay is hardly matter as ERP is for lifetime.

Sadly the ERP not implemented at all in business after the wait period and then company and management feel alternate way and give up about implementation plan of ERP. So be fair and take good time to first understand and discuss more about what you need and then shortlist the vendor and products. This process can be time consuming but it will give you reasonable way to successfully deploy ERP in your business.

5 Meet the Team – Since Outsource and crowd-source is excellent and make overall cost of IT deployment competitive and affordable for Small and Mid-size business.  We find so many companies and brand take benefit of outsource and work with smaller team.

So this is very important when choosing the vendor to deploy the ERP about the office, Team members and other information. If possible visit the development center of the company and meet the team. The purpose of meeting a team of visiting the office is not to compare if the team is 200+ employee or just 10+ people in office.

The purpose of this kind of interaction is to understand the team and its working.  Going by the facts like how may ERP deployment they have done on time. We have seen so many case where vendor quote wrong team size while taking part in evaluation due to overseas location or any other reason. Discuss with team members to understand what they know about the products and also more about how many years of experience they have deploying this.

These will help you in selection of a suitable vendor who not just promise you the delivery.  In the ERP deployment 1-2 Months of delay from  the promised date is hardly matter. But if this is more than that then it need to understand the core reason behind the issue  and why the delay happen.

 

So let gift your business something new this year that help your business to grow faster. ERP make your more competitive in the business to compete with.

 

Filed under: ERP

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