Common Challenges for SME ERP Solutions and How They Can be Solved
Enterprise resource planning (ERP) is not a new development in the business world, but its usefulness and application in small to medium enterprises are sometimes debated. A good ERP system form the backbone of a business and play a crucial role in the how the business and its resources are managed Traditionally, ERP was only the domain of large corporates with vast budgets. Over the last decade, it has become apparent that ERP is not only useful in large corporates, but may also yield significant benefits to smaller companies who invest in an ERP solution specifically suited to small businesses. Despite what some people may think, SME ERP solutions can add enormous value to an SME. That said, it is still not as freely used in small businesses as larger ones. This is because there are some challenges that prevent small business owners from investing in ERP. Let us discuss some of the challenges of implementing SME ERP solutions and how to overcome them:
- Low awareness and inaccurate perception: Small business owners who are not aware of the potential of ERP and how it can affect their businesses often see it as a large company investment. SME owners are sometimes also not very familiar with the best ERP suppliers for small businesses, as many ERP consultancies tend to focus on solutions for the larger corporates instead of SMEs. Because the market for ERP in small business is steadily growing thanks to the obvious benefits, small business owners are becoming more familiar with ERP, and it is only a matter of time before most small business owners and managers become aware of ERP and how it can improve their businesses.
- Lack of resources: Most small companies don’t have internal technical infrastructure to train and support employees involved with the implementation and management of such as system. A solution is to focus on vendors that supply full support and training, specifically for ERP in small to medium enterprises. Lupus Consulting focusses on SME ERP solutions in particular, and offer training and ongoing support to staff at affordable rates. It is also possible to implement parts of ERP into certain areas of the business and expand the solution as time passes and the business and resources grow.
- Affordable: ERP is usually seen as a large investment, and few small companies can afford a large-scale implementation of advanced new technology that is not crucial to production or operation. They have smaller budgets and may feel that the money could be put to better use elsewhere in the business. The truth is that an SME ERP solution costs less to implement and maintain than people may think, and adds value to the business virtually immediately, which makes the expense well worth it.
- Aversion to change: Before anything can change in a company, stakeholder buy-in is required to manage the change effectively. With the implementation of an ERP solution, the way information is stored and extracted will change, and it is essential that end users and IT staff are trained well to familiarise themselves with the system, and for them to have a full understanding of how ERP works, and how it can benefit the way they function in the short, medium and long term. A good SME ERP solution provider like Lupus Consulting will ensure that buy-in is achieved, and that the changeover to ERP is seamless.
- Scoping the system: The approach to implementation will be important in terms of the cost, the extent of change, and how long this will take. It is therefore essential that thorough analyses are performed to ensure that the right approach is taken. Some business managers may opt for the all-in-one-go approach, while a phased rollout could better suit SMEs. This is why the scope has to be clearly defined through collaboration between the client and the vendor. It is also possible to add more components to the ERP solution at a later stage as the business changes or expands.
If you are a SME owner or business manager, it is time that you explore the benefits of SME ERP solutions to help to manage the business better, to cut costs, and to boost the bottom line. Give our team at Lupus Consulting a call to discuss how we can help.