Enterprise Resource Planning what is that. According to Wikipedia it is “…. the integrated management of core business processes, often in real-time and mediated by software and technology.”
Simple enough but what does it include and what can it imply for an SME? Most SMEs start small and business processes are supported with an administration on paper or using MS-Excel. Sooner or later though, some more sophisticated automation is required often starting with an accounting system. Every company needs to file the accounts and taxes once a year, so this is a logical first step.
If more staff join the company perhaps a human resource management (HRM) system and/or payroll solution is required. And likely the customer database needs to be maintained, implying the need for a customer relationship management (CRM) system. Other business processes like purchasing, invoicing and inventory management might require automation as well.
Enterprise Resource Planning what is that. According to Wikipedia it is “…. the integrated management of core business processes, often in real-time and mediated by software and technology.”
Simple enough but what does it include and what can it imply for an SME? Most SMEs start small and business processes are supported with an administration on paper or using MS-Excel. Sooner or later though, some more sophisticated automation is required often starting with an accounting system. Every company needs to file the accounts and taxes once a year, so this is a logical first step.
If more staff join the company perhaps a human resource management (HRM) system and/or payroll solution is required. And likely the customer database needs to be maintained, implying the need for a customer relationship management (CRM) system. Other business processes like purchasing, invoicing and inventory management might require automation as well.
So when to consider investing in an ERP?
- Complexity. If you have only 1 process that needs attention, a dedicated system makes sense. If you have more processes that can do with automation: consider an ERP system.
- Scale. Related to the 1st criterion: if you have 500 staff, 1000s of customers and/or many daily transactions: consider an ERP
- Quality. If your administration needs to be always correct and up-to-date in all aspects: consider an ERP.
Most important: don’t take the decision lightly and see it as an investment. An ERP system needs to be valuable to your company; it needs to be worth it, improve your control, reduce your costs, improve the quality of your management reports, increase your customer service etc etc.
Call us for a free consultation or discussion about the issues you’re facing.
So when to consider investing in an ERP?
- Complexity. If you have only 1 process that needs attention, a dedicated system makes sense. If you have more processes that can do with automation: consider an ERP system.
- Scale. Related to the 1st criterion: if you have 500 staff, 1000s of customers and/or many daily transactions: consider an ERP
- Quality. If your administration needs to be always correct and up-to-date in all aspects: consider an ERP.
Most important: don’t take the decision lightly and see it as an investment. An ERP system needs to be valuable to your company; it needs to be worth it, improve your control, reduce your costs, improve the quality of your management reports, increase your customer service etc etc.
Call us for a free consultation or discussion about the issues you’re facing.
