SMBs miss out on actionable insights by not implementing ERP Software.
Over the years, we have seen many advancements in technology which is becoming more advanced and accessible day-by-day. As a result, smaller businesses now have access to the tools that were previously available only to large organizations. Nowadays, mid-market companies are keeping in step with big-league players, creating a pool of wider competition, whilst adding competitive pressure on those lagging behind.
As these businesses are scaling, they expect their managers to implement appropriate technology tools and methods to improve efficiencies and reduce costs. In this scenario, Enterprise Resource Planning (ERP) could be a great option to consider. It’s becoming increasingly popular among small and medium-sized businesses these days, as it offers multiple benefits. Here are the various things you need to know about ERP along with its importance in the mid-market.
What is ERP?
ERP, Enterprise Resource Planning, is a business process management software which allows companies to efficiently manage and integrate core business activities. An ERP system automates business processes and various operations whilst data is stored in a centralized location and made readily accessible. Moreover, this software allows companies to consolidate planning, purchasing inventory, sales, marketing, finance, human resources and so on.
Why is ERP Important to Mid-Market Companies?
ERP becomes incredibly important to Mid-market Companies because of the following reasons:
Healthy productivity performance is essential for businesses to enhance their profitability. ERP consolidates important data and information from all business departments onto a single platform, so it can be found with ease whenever it is needed. As a result, it eliminates the need for maintaining multiple documents and excel spreadsheets. The organized data stored in the ERP highlights where your team is succeeding along with the areas with room for improvement. Hence, it can be easily understood why 96% of top-performing businesses rely on ERP for their day-to-day business operations. Furthermore, ERP solutions can enable improved communication and collaboration through data access, which allows employees to be part of the company’s overall goal achievements.
Improved Decision Making:
ERP systems provide real-time data and analytics, helping businesses to simplify their management, sales, marketing, and accounting teams' decision-making process. The easy access to important information allows business leaders to make necessary decisions quickly and efficiently, which increases the chances of success.
Nowadays, automation is unarguably crucial for the overall growth of a business. ERP solutions enable the automation of data capturing and analysis, which vastly reduces the risks associated with human inputting errors. The biggest risk from manual error is of it remaining undetected, with the resulting corrupt data being used in strategic decision-making processes. Research shows us that these risks are reduced by 80% by introducing automation of these processes.
Implementation of ERP solutions will require some investment of time and money at the outset, but it undoubtedly delivers a return on that investment in a relatively short space of time. By reducing the time and effort currently being spent by many in manually gathering and analyzing data, we have an immediate cost saving. By giving the business team access to immediate insights into the business’s performance, from right across the business, the risk of missing lucrative opportunities, or of spotting problem areas, is significantly reduced.
Research suggests that businesses that utilize data insights experience revenue growth of 21% in a year, compared to 9% for businesses reporting limited use of data.
Mistakes to Avoid When Implementing ERP Systems
When implementing ERP solutions, many mid-market companies try to replicate existing manual processes within a new system. This may be appropriate for some organizations, but for most, a re-think of their existing processes may be a more beneficial approach to take. Adapting some areas to blend with an ERP solution may, in fact, allow the business to see greater improvements to their efficiencies and profitability within a shorter space of time.
An honest appraisal of your business in terms of its unique offerings, and competitiveness is a valuable step to take. By not understanding your market landscape, and how others are performing within it, it will be impossible to compete effectively. Measurement of each process, and how it contributes to your competitive advantage (and bottom line) must be reviewed analytically before ERP implementation, with clear goals to be achieved post-implementation.
It can sometimes be a mistake to select the most popular solutions in the market. It is understandable that there is a certain comfort that comes with ‘big’ names, but what is even more important is to decide if it ‘fits’ with your company growth stage, size, investment stage and overall goals. As a mid-market organization, does the ERP system of choice provide the cross-business solution you need, or will you have to invest in several other tools to design a patchwork of data insights?
For too long, ERP type solutions were the remit for large organizations with deep pockets. But businesses in the mid-market also need access to the functionality and strategic insights afforded to their larger counterparts. With globalization, the markets have become more competitive. Therefore, businesses need to work smarter, with the information they have to hand, to give them a competitive edge. It’s time to give them what they need.
Why SOBI Analytics?
SOBI Analytics is an ERP solution for the mid-market. Delivering layers of cross-business trends and insights, combined with industry benchmarking, SOBI is designed specifically for companies that are on a growth trajectory.
Our goal is to level the playing field with the big players, in terms of strategic planning and delivery.
Contact us to learn more about ERP solutions and how SOBI can help.