Small Business ERP – Benefits
Most CEOs and Executives would agree that there are benefits to ERP (Enterprise Resource Planning), however, many struggle with measuring the benefits against the cost and disruption to their business. They hesitate, opting instead for disparate systems, spreadsheets or outdated legacy systems.
In this post, we will review a recent Aberdeen Group Infographic that discusses how ERP helps companies Run Simple.
Aberdeen’s research finds that 96% of Best-in-Class (the top 20% of performers) growing businesses have implemented an ERP solution. These solutions are designed to help organizations of all sizes face their challenges and provide a single business system to support visibility, efficiency, and decision-making. ERP is the key tool in business to help organizations of all sizes face their challenges and provide a single business system to support visibility, efficiency, and decision.
Challenges for Small to Mid-Sized Companies:
Growing companies face many challenges, which are amplified without a single system. Aberdeen’s research indicated that companies without an integrated ERP faced the following challenges:
83% of the companies had inaccurate data
89% of the companies’ system could not track business processes
78% of the companies maintained redundant data
83% of the companies’ systems could not or were not integrated.
72% of the companies’ personnel could not access information away from the office.
Benefits for Small to Mid-Sized Companies:
Although benefits may vary between companies and industries, the fact is that companies that have implemented a small business ERP system can achieve measurable and sustainable benefits. Aberdeen outline how using a a single small business ERP system helps growing companies:
48% of companies that implemented ERP had real-time visibility into the status of all processes (compared to 6% without)
77% of companies that implemented ERP were able to standardize back-office processes (compared to 22% without)
Companies that implemented ERP were 4X more likely to be able to forecast and plan for demand
Companies that implemented ERP saw an 11% reduction in operational costs
Companies that implemented ERP were 633% more likely to be able to share data with suppliers, customers, resellers, and regulatory body.
These benefits are significant and could represent hundreds of thousands if not millions of dollars in savings and increased revenues.
(Get the entire Aberdeen Group Infographic Here)
The Real Benefit
The implementation of a single ERP system helps eliminate or drastically reduce these challenges and provides real measurable benefits, but systems alone are not the panacea. As part of any ERP project, the company must also focus on standardization of processes and procedures and on streamlining processes. Implementing ERP in and of its self does not provide the benefit. However, implementing ERP can become the catalyst for a true “business transformation” – better alignment of People, Process and Technology.
Over my 25 plus years of experience, when companies focus on “business transformation” and not just on ERP, there are measurable and sustainable benefits to implementing ERP.
Why Tegrous has partnered with SAP Business One.
With over 25 years of ERP experience, Tegrous’ leadership has implemented most of the leading Tier I, II & III ERP systems and chose SAP Business One for small to mid-sized companies because it is:
Complete – All essential business functions (accounting, customer relationship management (CRM), operations, sales, marketing, service, warehousing, and more) are available out of the box. Complete visibility and better control help you run your end-to-end business processes professionally.
Integrated – All business functions come in one package, which makes them easy to set up, use, and optimize. Integration with other systems is possible via standard integration packages or open application programming interfaces (APIs).
Extensible – A flexible platform with 41 localizations and 27 languages allows for growth and innovation. More than 500 pre-integrated, industry-specific, and horizontal solutions are available via SAP partners.
Innovative – Offered via browser mobile devices, in the cloud or on premise and providing real-time data insight, you get access to ground-breaking technologies – and you stay ahead of the competition.
Truly affordable – Start with a basic on-premise or cloud implementation with a few users. Or use the starter package, which includes both software and implementation, as a quick, low-cost, low-risk option with limited capacity for up to five users.