At what point do companies need a single system? It is usually when you start to experience the operational limitations of Accounting only solutions and/or Excel spreadsheets that many small and medium companies use to manage their businesses. This usually impacts companies in high-growth mode that feel these stress points the fastest. You quickly realize that you don’t necessarily have adequate insight on what’s actually going on within the business. There’s a tipping point when the management team feels like they can’t grow or scale the company under those circumstances, and they know they need some kind of system that can give them more accurate information, better visibility, allowing you to manage all your critical operations in a single integrated information.
Think enterprise resource planning (ERP) solutions are just for big companies? Think again.
According to Aberdeen, 96% of best-in-class growing businesses – the top 20% of performers – have implemented ERP solution. That’s a huge percentage – enough to consider ERP systems mission critical to the success of high-growth small and midsize companies.
And when you think about it, ERPs geared for SMEs make perfect sense. You have the same kinds of processes to support as large firms: procurement and logistics, manufacturing, customer-facing processes like sales and support, finance, HR, and more. You can either manage all of this with systems that can’t interact with one another, can’t track business processes, that can’t generate the accurate data you need to understand business performance – or you can simplify with an ERP.
Simplify Work – and Scale Easier – with a Single Business System
ERPs act as single business systems that centralize core business data and support core operations, processes, reporting, and more. They help organizations of all sizes to face their challenges and as a single business system, they support visibility, efficiency, and decision-making. At the same time, they make work faster and easier with automation, seamlessly integrated processes, and easy access to accurate, trusted data.
Take the SAP Business One solution from SAP, for example. SAP Business One is an affordable, easy-to implement, complete business management solution. Designed specifically for small and midsize enterprises, it ensures company growth, helps increase profitability and control, and automates your business processes. This total solution comprises all the core functions you need to run your growing business including administration, financial accounting, banking, sales, purchasing, customer relationship management, stock control, manufacturing, management accounting and reporting.
And the benefits, based on surveys of executives at growing businesses with ERPs, are significant and directly related to business growth. For example, they’re seeing:
- 11% reductions in operational costs
- 10% increases in profitability in just two years
- A 48% likelihood that they have real-time visibility into the status of all processes (compared to 6% without an ERP)
- A four-fold increase in their ability to forecast and plan for demand
- 633% greater likelihood that they can share data with suppliers, customers, resellers, and regulatory bodies
- 77% likelihood that they can standardize back-office processes (compared to 22% without an ERP)
In addition, best-in-class growing businesses reportedly can easily find and use the data they need, no matter where they are, to make fast, agile decisions; Aberdeen research shows that ERPs reduce the time it takes to make decisions by 36%! Why? Because the processes ERPs support work from and contribute to a single source of truth to support visibility, efficiency, and decision-making.
Have you thought about running your business on an ERP? Or are you still using point or stand-alone solutions for finance, customer management, HR, and other core operational areas?
I guess the real question is, given the competitive edge that ERPs provide – and their ability to make work and life easier in a small or midsize business – can you afford not to move to an ERP?