In this changing world, running a business can be overwhelming irrespective of the size. As per the U.S Bureau of Labour Statistics, about 20% of small businesses fail within their first year. Additionally, any system set up to better manage resources has to factor in productivity. This may be easier said than done due to the inherent flaws of a large ERP. Even with a huge investment, larger businesses can often struggle with non-performance of their ERP system. Where does that leave small and medium businesses that have neither the capital nor the cash cows of an enterprise? Here’s how a radically different pricing model can help small business ERP.
But first, let’s examine if small businesses ERP is really needed?
Small and Medium businesses need to be faster and sharper than their competitors to keep themself alive. The multiple factors such as the use of separate software packages for each module, difficulties in meeting the client’s demands, shifting timelines, error-prone documentation & data management, and manual processes can slow down their speed. Most startup founders find themselves fixing manual errors and dealing with productivity drainers. The result is often less than desirable.
By using the ERP most of your back end office functionalities can be automated, it will prevent you from wasting your time on menial tasks. Of Course, initially, there will be money, effort and time to spend on implementation but the productivity, performance improvements and cost savings of a perfectly implemented small business ERP often outweigh the short term expenses. Panorama Consulting’s ERP report claims that 95% of the businesses achieve major inclination after implementation of ERP through reducing process time, centralizing data and also by increasing the collaboration. Clearly, ERP is worth investing in a general sense but does that logic hold for all ERPs and all businesses?
Why Large ERPs Don’t Fit Small Businesses
Most SMB owners shy away from implementing an ERP model that requires regular maintenance, upgrades, fixed modules, and for a good reason. The pricing model of large ERP systems can be a massive undertaking with diminishing returns. When installing a Large ERP the one time set up cost gets added to the CAPEX, which creates a barrier to entry for most SMBs. Additionally, startups usually follow a disruptive business model that is unique and requires regular customization. The large ERP model of ‘pay-per-customization’ can be time-consuming and also expensive at the same time. Needless to say, tailor-made ERPs can delay the deployment process while adding up the cost to the product development bill.
SMB needs to invest in ERP that matches their needs, fits their industry, and also the matches with their fast–paced work culture.
The only way through which they can fulfill these requirements, is by building their own ERP, but how? It would need extraordinary and specialized skills and can take years of development. Fortunately, there are now alternatives like many ERP systems, which was designed from the ground up to solve real-world problems of SMBs.
Fast, light, and scalable: What ERP for small business looks like
Large ERPs are designed according to broad and stabilized businesses, which is surely not the best choice for SMB. Always Select an organization whose product development journey, we understood that small and medium-sized firms need continuous changes and updations to keep them in the race. For example, we know that for SMBs, there is a clear restriction for resources, manpower, and budget, while you have to keep the productivity of your business high to remain in the race. Surely that adds half the stress on co-founders!
ERP should be simple, easy to use, and maintain. This is why while other ERPs take about six months to two years for deployment. This only seems impressive due to standard timelines driven by legacy ERP systems. What’s true for deployment timelines is also true for the pricing.
Many myths surround ERP pricing, But the best model is a proof of concept that there can be a better way.
ERP has become synonymous with IT investments over the last few years. This implication of upfront investment is also the main reason that restricts people from taking a step closer to ERP.
We wanted every SMB to experience a hassle-free business management process, so we decided to come up with the flexible payment method. There are organizations, through you can deploy an ERP at your organization; then you can pay the cost in monthly instalment.
How Small Business ERP can replace ‘one size fits all’ model
Software development in many ways is digital evolution at play. The modules of the software is carefully sculpted by considering the requirement of each industry. While other ERPs still use Legacy UX, many other organizations incorporated GUI based UX that can be understood and grasped in less than a day.
This cuts down the learning curve for the SMB staff and makes digital transformation smoother. Another issue that we repeatedly heard from the SMBs we worked with was the need to use multiple third-party applications that their ERP doesn’t cover. Hence we integrated CRM, e-commerce and other modules. To ensure that the start-up can migrate their patchwork of multiple tools to a single, robust system. The closed systems restrict the use of third-party services. But we understood the need, so we made our ERP connectable with third-party services using API. The modules are user friendly and easily deployable, which drastically reduces your total cost of ownership up to 80%.
The biggest lesson that we learned during this journey is that much of the available technological innovation. It is restricted by the status quo, and not a scientific problem-solving mind-set. But to solve this there are many ERP organizations to solve your program.