As small and medium businesses (SMBs) accelerate their growth, they quickly encounter many of the same challenges with which larger enterprises are grappling.ÌıPoor visibility into operations, slow or inefficient business processes, and an inability to move fast to respond to a changing business landscape are just some of their issues.

The answer that most larger businesses embrace to these challenges is an enterprise application suite that allows them to manage every aspect of their business in an integrated way. Just like larger businesses,ÌıSMBs needÌıtechnology thatÌıscales as they grow, helps them to streamline their processes, and enables them to maintain process discipline—all without constraining their agility.

Yet enterprise resource planning (ERP) software has a reputation for being too expensive, complex and feature-dense for the average SMB. The traditional thinking is that applying ERP to a small business’s challenges is a bit like using a flamethrower to kill a mosquito or unleashing a tsunami to put out a candle—an expensive, risky solution that may harm the business more than it helps.

However, ERP has evolved over the years, and many of the preconceptions SMBs have about ERP have become misconceptions. Indeed, one global IDC study shows thatÌı92% of SMBsÌı(those it defined as leaders that are outperforming their peers)Ìıuse or plan to use ERP software. Let’s bust some of the myths about why ERP isn’t a good fit for SMBs.

Let’s explore the myths behind ERP

Myth #1: Not only is it too expensive, but the costs are too unpredictable

As the ‘e’ in the acronym implies, the first ERP software suites were complex, monolithic solutions designed for larger enterprises. They’d need substantial budgets for hardware, software licences, consulting and integration to implement an ERP suite. The complexity of the deployment meant that the costs weren’t always predictable. So many SMBs still think ERP is still just too expensive for them.

Reality:ÌıToday, SMBs can choose from a range of ERP solutions that are designed to beÌıaffordable for smaller organisations.ÌıThey can opt for a software-as-a-service or hosted solution that enables them to pay a predictable monthly fee for their software. Total cost of ownership is kept low since ERP solutions for SMBs are designed to be low maintenance. Plus, today’s modular architectures mean ERP can scale and grow to meet an SMB’s evolving needs.

Myth #2: ERP takes years to implement

Many SMBs still think of ERP as a project that will take years to reach fruition, causing disruption to their business for 18 months or two years as they implement the software. ERP is associated with complex business reengineering exercises as well as extensive customisation and integration efforts. But is this still the case?

Reality:ÌıERP best practices for companies of all sizes have come a long way over the past 10 years. And SMBs, especially, can benefit from ready-to-run cloud ERP built on the latest industry best practices. Proven tools and methodologies bring predictability to the scope and timeframe for an ERP deployment. It’s today possible to deploy anÌıERP solution in months or for simpler cases, even within weeks.

Myth #3: The path to ROI is long and uncertain

In a challenging environment, most SMBs are looking for quick wins when it comes to cutting costs, increasing productivity and driving revenue growth. Many perceive an ERP solution as an option that will take years to deliver return on investment (ROI), soaking up human and financial resources until they can finally go live with their platform.

¸é±ğ²¹±ô¾±³Ù²â:ÌıThe modular nature and flexibility of a modern ERP system means that it doesn’t need to be rolled out in a single, big-bang implementation. Companies can introduce ERP modules in a phased approach, using the features and functionality that address their most pressing pain points. They can expand the deployment over time, effectively using ROI from the earlier phases to pay for the later ones.

Myth #4: ERP is too complex for SMBs

ERP software packs in a lot of functionality, so many SMBs are concerned that it could add more complexity to their processes. Many also wonder whether the software will be too difficult for their end-users to use, especially if they’re implementing ERP after using Excel or simpler finance packages for many years.

¸é±ğ²¹±ô¾±³Ù²â:ÌıEase of use of ERP software has improved in leaps and bounds, with a slick user experience that will be familiar to anyone who has used a mobile app or cloud productivity tool before. While there are many features and modules available, the deployment can be tailored to the business’s needs. ERP makes life simpler because it eliminates redundant processes, breaks down data and business siloes, and reduces the need to work across multiple tools, systems and manual processes.

ERP is not just for big business

ERP can help businesses of all sizes to streamline processes, remove duplication of effort and enable the frictionless flow of accurate information across their operations. It’s an essential tool for any business aiming to achieve greater efficiency to increase operating margins, while leveraging improved insight to grow revenues. Today’s solutions enable SMBs to unlock the power of ERP, so they can compete with larger companies on a more even footing.

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Think ERP solutions are only for large enterprises? Think again.Ìı

The post Costs to Consider when Thinking of Implementing an ERP appeared first on 51·çÁ÷Africa News Center.

They will have to migrate their ERP applications across to 51·çÁ÷S/4HANA and undertake a lengthy process to ensure that this migration is as seamless as possible and does not impact any critical business operations.

While 51·çÁ÷is a trusted solution that delivers exceptional value for many organisations with an ERP platform, there is still one question that every organisation wants answered – why?

Why should they undergo this migration and overcome numerous logistical challenges just to meet this deadline?

Pieter Potgieter, Senior Commercial Manager from Dimension Data explains that the answer lies in 4 measurable and valuable business benefits that come with 51·çÁ÷S/4HANA operated in the cloud on a hyper-scaler like Microsoft Azure:

1 – Serving customers better

In the always-on, always-connected economy we operate in today, organisations run a very real risk of losing business and customers if their critical business applications are not available and performing to expectation.

Customers demand swift and flawless service, regardless of industry, and the capability to serve and charge customers are highly dependent on the ERP solution at the centre of the application landscape.

For this reason, the adoption of a modern and intelligent ERP system like 51·çÁ÷S/4HANA can drastically alter a customer’s experience of an organisation.

If you combine this with the power of cloud and a hyper-scaler’s ability to provide highly available infrastructure at reasonable cost, you have a powerful basis for digitally enabled organisation, poised for growth.

2 – Predictable and manageable cost

Traditionally in on-premise 51·çÁ÷deployments, environments had to be sized to cater for peak processing requirements like month end financial close or production runs.

This meant that the business paid a premium for already expensive hardware that operated at 15% efficiency for 90% of the time.

This was exacerbated by the unpredictable business demands in the form of ad-hoc projects, unexpected growth and other business activities like mergers and acquisitions.

Deploying S/4HANA in the cloud allows organisations to align infrastructure related expenditure with its actual real-time processing requirement in the form of OPEX and avoid costly upfront CAPEX investments.

It also significantly reduces the risk of business interruptions and project delays associated with hardware order lead times.

When you combine this with the proven capability of Dimension Data to cost-efficiently manage 51·çÁ÷landscapes in the cloud, you have a powerful platform from which to operate your business without having to worry about keeping the 51·çÁ÷lights on.

3 – Richer insights

There is little doubt that data remains the black gold of the business world, providing insights and information that can be used to transform businesses by increasing product relevance, service delivery and customer satisfaction.

With 51·çÁ÷S/4HANA, an organisation has easy access to a rich and relevant data, and when combined with Microsoft Azure’s leading analytics capabilities, provides insights that allows everyone in the business to make better decisions.

This can seamlessly be further enriched with data from other business sources like IOT and other operational systems.

4 – Keeping pace with accelerating technology innovation

51·çÁ÷S/4HANA and Microsoft Azure come from two organisations that invest time and money into research and development (R&D) that very few businesses can afford to match.

This not only translates into increasingly relevant features that keep pace with market demand and technology evolution, but also into immense business value.

Every valuable feature consumed from S/4HANA running on Azure means time and money you can spend on business functions that help differentiating you from your competition and making you more relevant in your industry.

And you know you are in safe hands with Dimension Data managing the entire process with highly skilled people and robust management tools from trusted partners.

Adopting 51·çÁ÷S/4HANA is much more than just another software update.

It’s a revolution in how an organisation consumes services and builds applications, how it translates technology into performance, and IT into service delivery.

In a highly competitive market that is challenging to navigate, 51·çÁ÷S/4HANA in the cloud provides your business with the technology partnership it needs to remain relevant and innovative without having to worry about stability, scale and capability.

In collaboration with Dimension Data, you can focus on your customers and your business with visibility across the entire technology stack.

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At the same time, in today’s connected, informed, and always-on marketplace, customers are demanding high-quality, individualised products delivered within shorter timeframes. To build up local production capacity and meet these requirements, companies must synchronise their demand chain with their supply chain.

“In manufacturing, where supply chain, distribution and service are the foundation of success, intelligent enterprises are using the latest ERP technologies to gain the edge on their competitors –from order placement all the way through to execution and delivery,� says Navin D’Cruz, Head of Sales East Africa, Seidor Africa.

“Automation in the factory is nothing new, but the convergence of the digital and physical worlds has made the transformation of the supply chain increasingly possible.�

In manufacturing, artificial intelligence (AI) improves overall equipment efficiency production yield. This means manufacturers can use AI to increase uptime and ensure consistent quality, which makes for better forecasting.

Machine learning (ML) which requires data input, data training, defining and choosing algorithms, data visualisation and more, is applied to develop a mapping function with a level of accuracy that allows manufacturers to predict outputs when new input data is entered into the system.

Powered with AI, ML, and natural language processing, chatbots in manufacturing can streamline manufacturing processes by equipping stakeholders with the required data on the go. Deploying chatbots for manufacturing can help companies gain increased profits, enabling them to maintain a competitive edge in a global marketplace.

In “The smart factory: Responsive, adaptive, connected manufacturing�, part of a Deloitte series on Industry 4.0, the research team reports that the smart factory represents a leap forward from more traditional automation to a fully connected and flexible system, one that can use a constant stream of data from connected operations and production systems to learn and adapt to new demands.

D’Cruz says there are five key benefits to integrated ERP systems:

1. Accurate demand forecasts

How many times have business owners wondered what the next quarter is going to look like? ERP brings sanity to production, sales, procurement and inventory plans. It helps to generate forecast and sales reports based on historical transactions, increasing the accuracy and dependability of production and buying levels. This minimises both out-of-stock and excess inventory situations, keeping stock levels in line with the increase and decrease in demand.

With major advances being made in artificial intelligence and machine learning, businesses are investing heavily in advanced analytics to get ahead of the competition and increase their bottom line. One of those areas is called predictive analytics, where companies extract information from existing data to determine buying patterns and forecast future trends. By using a combination of data, statistical algorithms, and machine learning techniques, predictive analytics identifies the likelihood of future outcomes based on the past. This technology is being used to determine customer responses or purchases, forecast inventory, manage resources, and even detect fraud.

Predictive analytics is becoming more and more mainstream when it comes to demand forecasting, an area of predictive analytics focused on customer demand. Based on the analysis of historical data and current market conditions, it determines the estimated demand for the future and sets the level of preparedness that is required on the supply side to match demand.

2. Decreased costs and improved profitability

Industry leaders everywhere are focusing on increasing revenue in the next 18 months. Getting more work done for lower costs means business growth and improved profits. ERP helps manufacturers to react quickly to changes in the industry, such as raw material costs and delivery timeframes. Data is stored in a single, integrated database that allows fast information processing, and enables quick, high-quality decision-making. Increasing organisational efficiency highlights less profitable areas and cuts down on waste. It also reduces control and inventory management costs.

3. Mobility and increased employee efficiency

Working remotely can be challenging for companies that are experiencing it for the first time. In the strange new world we are living in, ERP enables employees to work remotely with ease, and to access all the information they need from a single portal. They can access business data from their phones, tablets, laptops and computers, no matter where they are based.

4. Increased flexibility

In a pandemic world, manufacturing flexibility provides the capability to respond quickly to shifts in market requirements. Flexible manufacturing enables a business to be collaborative in meeting market and customer demands, respond more quickly to changing demand, and build to order. Flexible approaches enable increased revenue and market share, improved efficiency, and lower cost.

5. Enhanced security and compliance

Whilst the number of data protection laws of Africa are increasing, on 1 July 2021 the Protection of Personal Information Act (POPIA) becomes effective in South Africa.Ìı Compliance with data protection laws is non-negotiable. ERP systems have many features that can assist companies with the protection of personal information. Data entered into an ERP system can be secured and coded. Access to the data can be restricted through identity and access management, ensuring data security.

“Companies depend on technology systems to grow, but outdated, overly complicated architectures can hinder business agility,� says D-Cruz.

“Integrating legacy systems with new, intelligent ERP technologies to unlock scalability and unleash the potential for innovation is the start of a journey that leads to sustainable growth.�

This article first appeared on FutureWave .

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Massbuild is a subsidiary of Massmart and operates four complementary brands: Builders Warehouse, Builders Superstore, Builders Trade Depot and Builders Express. The company employs more than 8 000 people and generates annual turnover of R13.8-billion.

Massbuild chose 51·çÁ÷Marketing Cloud to enable its marketing team of five users to reach and engage up to 224 000 customers per day via measurable, trackable email campaigns. “We wanted to improve the way we manage our customer communication and become more efficient, professional and reliable in our marketing engagements,â€� said Massbuild. “In light of regulatory requirements, we also wanted to make sure we were compliant to the Protection of Personal Information Act (POPIA) by accurately tracking marketing permissions, especially the opt-out functionality that is required by law.â€�

A strong business case for the project was developed upfront to ensure maximum return on investment. Buy-in was secured from key stakeholders, and a project sponsor drove the process from an executive management team to all levels of the organisation.

The project team’s change management process and strong link to business value ensured that end-users recognised the value the project would bring. The team also utilised simple engagement and communication channels, such as demos and show-and-tell sessions, to engage important internal stakeholders ahead of the implementation.

Organisational readiness was a key priority. Massbuild conducted stress-testing weeks prior to the go-live by uploading more than 70 000 customer records. The company also worked closely with implementation partner Consnet to ensure the team was properly skilled, and provided the marketing team with access to the test environment so they could familiarise themselves with how to navigate the solution ahead of time.

Considering the constrained economic conditions, cost containment was a key focus for Massbuild. The company had a well-defined business case with a clear return on investment model, and kept things simple by using standard 51·çÁ÷functionality to avoid costly custom development. The implementation team also focused on getting the basics in place before adding richer functionality.

Simplifying things paid off. The project was delivered within 90 days, with five users going live just ahead of Black Friday. Go-live was achieved two weeks earlier than initially planned, allowing Massbuild to conduct proper segmentation of its customer databases and send out targeted campaigns ahead of the major shopping period. With advanced tracking of campaign performance, the teams also have full visibility of how its campaigns are performing in real-time, which can inform its customer experience strategies and improve how Massbuild engages with its customers.

As part of cost containment measures, Massbuild also wanted to in-source campaign management functions that were previously managed by a third-party vendor. In one campaign period stretching from November to May, Massbuild sent out more than 24 million emails via 51·çÁ÷Marketing Cloud. With its previous provider this would have cost the business well over a million rand, but in-sourcing the work and using the 51·çÁ÷Marketing Cloud enabled Massbuild to save nearly 90% of that cost without reducing the quality of its customer engagements.

Massbuild is planning further integrations to support the marketing team, and are currently exploring the implementation of customer insights and integrating Facebook and Google Analytics to ensure its teams have the intelligence and insight to adjust marketing activities based on real-time customer feedback. A future product roadmap also includes the integration of mobile payment functionality through a partnership with Zapper.

Cameron Beveridge, Regional Director: Southern Africa at 51·çÁ÷Africa, says Massbuild has rapidly elevated its customer engagement capabilities with this latest implementation. “By building its customer experience strategy on the latest technology, Massbuild has enabled smarter decision-making for its marketing teams while unlocking welcome cost-efficiencies despite difficult macro-economic conditions. With the correct technology in place to deliver intelligence to marketing teams and with the support of a capable technology partner in Consnet, Massbuild is well-placed to build on its reputation as a market-leading brand in its industry.”

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