Why ERP fails and how the right solution will help your small business gain an advantage over competitors
Many small businesses struggle with old accounting solutions that can't keep up with their growth. You need a solution tailored to your business.
Before selecting ERP software for small businesses, it’s critical to understand your business needs (and pain points) and whether ERP software can help you address them.
For example, do you sometimes struggle with inconsistent data stemming from different business areas? Or do you find it difficult to access up-to-date financial information when you need it? These are often key signs that your business is outgrowing its accounting software. However, recognizing that your small business is ready for software like ERP is only the first step.
You need to consider your budget for migrating to ERP software and how long this process will take. You'll also need to consider if your company prefers a cloud, on-premise or best-of-breed solution. The answers are not so straightforward and depend on the size and scope of your business.
What ERP means for small business
In rapidly growing smaller businesses, managers are sometimes unable to identify what’s happening in every area of their business. They may, for example, not know how much inventory their business has or requires. ERP means that owners and managers are getting a view of what’s happening in every area of their business, including: administration and operational functions, HR, procurement, manufacturing, warehousing, sales and marketing, customer service, and more.
Why ERP fails
Any small business owner looking for a successful ERP software solution must first gather the requirements of all stakeholders and carefully plan the project in advance, in pursuit of ROI.
The reputation of ERP software as being clumsy, expensive, and difficult to use discourages many small businesses ready to take the next step. What's more, many ERP projects fail because small business managers fail to consider:
- How ERP will impact day-to-day business processes
- How company staff will use ERP software as part of their function
- The cost of an ERP project from beginning to end
- The time it takes to implement such a solution
Most small businesses will find that cloud-based ERP software is typically less expensive to adopt and implement than an on-premise solution, due to its SaaS nature. However, small businesses could be better served by considering a solution that combines the best of cloud ERP and on-premise ERP software.
The good news is that an ERP solution is affordable, flexible, and easy to implement. It will help you and your small business function more efficiently.