Enterprise Resource Planning
  Home ERP Benefits Features Selection Implementation SAP Oracle Microsoft Dynamics Books
ERP Guide
Business One vs GP
Causes of Failures
Choose Best Software
Choosing the Software
Companies and Providers
Consultants Role
Cost of Software
Dynamics Selection
Errors in Implementation
For Large Corporation
For Real Estate
For Small Business
For Health Care Industry
How to Choose ERP
How to Sell Software
Implementation Challenge
Implementation Cost
Implementation Methods
Implementation Troubles
Importance in Small Business
Increase Productivity
Market in India
Purpose of Software
Open Source Technologies
Selection of Software
Success Factors
System Implementation
Training for Jobs
Troubles and Solutions
Why Implement ERP
Wireless Technology
SAP Section
ABAP Developer
ABAP Performance Tuning
ABAP Programming
ABAP Programming Language
Advanced Planner Optimizer
Basic Modules
Business Intelligence
Business One
Business Warehouse
BW Module
CO Module
Data Warehousing
Different Components
FI Module
HR Module
MM Module
Module Introduction
Online Training Program
Performance Tuning
SD Module
Strategic Management
Web Application Server
What Is SAP

Increasing Importance of ERP in Small Business

SocialTwist Tell-a-Friend

Many of the global fortune 500 companies have implemented ERP to organize work and improve productivity. System requires huge expense and resources, and multi-million dollar companies are ready to spend money and time on ERP implementation and take the risk, whereas, small companies in growing phase may not have excess resources which can be diverted to ERP implementation - the process which may interrupt the normal business procedure of the organization and prevent employee from performing normally for more than four to five months of implementation.

A simple ERP implementation process includes determining if there are resources available to afford the new system, determining the needs, data analysis, data integration and removal of duplicate entries. The last step is to select the appropriate vendors and get the best bargain.

Features of ERP which attracts small-businesses

1. It improves efficiency and provides an integrated solution. It helps in regulating production procedure and enables growth.

2. Small and mid-sized companies following the traditional method of data keeping may not have all the data at one place and the data need to be transferred from one place to other manually. This increases the chance of errors and expense on data keeping at various places which can be reduced in an integrated automated system.

3. Many ERP vendors are providing specialized services at appropriate cost to small business which has eased the processes and even reduced risks.

4. Many leading ERP providers have entered the small business market which has increased competition and also enabled industries to get functional solution.

5. The latest technologies such as Dot NET and web enabled features have allowed the system to be integrated easily to every kind of application and improve communication and speed up transactions.

Risks of ERP for small business

For both small and large organization the procedure has certain risks and it requires great commitment from the organization.

1. The selection of ERP vendor is a vital procedure and companies should determine the vendor after carefully analyzing the risks and drawback of the process.

2. The cost of integrating the system can be heavy and it can be long term and complex procedure.

3. The structure of project should be chalked out before starting. Planning is vital stage and the benefits of new system should be compared with the original system.

4. The businesses should analyze the future needs to select the vendor.

5. ERP provides highly accurate data and manipulations may not be possible, therefore, the procedures which are highly complex or requires manipulation may not get integrated.

Benefits of ERP for small business

1. It removes the need of porting data and reduces expense on human resource.
2. It automates business procedures and reduces errors.

3. It helps in increasing productivity and clarity across the departments of the organization.

4. The real time data provided by the system can be very beneficial for marketing, management and accounting, and enable the organization to take accurate decisions.

5. It enables business owners to take vital decisions on time and reduce wastage.

 Read Related Articles

ERP SoftwareHow to Choose the Best ERP Systems
ERP SystemHow to Sell ERP to SMB or SME
Enterprise SystemWhat is the Purpose of ERP Software
Enterprise SoftwareCauses of ERP Failures

  SocialTwist Tell-a-Friend
Review Section
Business One  
Dynamics AX  
Dynamics CRM  
Sage MAS 90