{"id":147181,"date":"2024-01-17T08:41:38","date_gmt":"2024-01-17T08:41:38","guid":{"rendered":"https:\/\/news.sap.com\/africa\/?p=147181"},"modified":"2024-01-17T08:41:38","modified_gmt":"2024-01-17T08:41:38","slug":"busting-the-biggest-erp-myth-that-its-not-suitable-for-smbs","status":"publish","type":"post","link":"https:\/\/news.sap.com\/africa\/2024\/01\/busting-the-biggest-erp-myth-that-its-not-suitable-for-smbs\/","title":{"rendered":"Busting the Biggest ERP Myth \u2014 That it\u2019s Not Suitable for SMBs"},"content":{"rendered":"<h1>The traditional thinking is that applying\u00a0<strong>ERP to a small business\u2019s\u00a0<\/strong>challenges is a bit like using a flamethrower to kill a mosquito or unleashing a tsunami to put out a candle\u2014an\u00a0<strong>expensive, risky solution that may harm the business more than it helps.<\/strong><\/h1>\n<p>As small and medium businesses (SMBs) accelerate their growth, they quickly encounter many of the same challenges with which larger enterprises are grappling.\u00a0<strong>Poor 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.<\/strong><\/p>\n<p>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,\u00a0<strong>SMBs need<\/strong>\u00a0technology that\u00a0<strong>scales as they grow, helps them to streamline their processes, and enables them to maintain process discipline<\/strong>\u2014all without constraining their agility.<\/p>\n<p>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\u2019s challenges is a bit like using a flamethrower to kill a mosquito or unleashing a tsunami to put out a candle\u2014an expensive, risky solution that may harm the business more than it helps.<\/p>\n<p>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 that\u00a0<strong>92% of SMBs<\/strong>\u00a0(those it defined as leaders that are outperforming their peers)\u00a0<strong>use or plan to use ERP software<\/strong>. Let\u2019s bust some of the myths about why ERP isn\u2019t a good fit for SMBs.<\/p>\n<h2><strong>Let&#8217;s explore the myths behind ERP<\/strong><\/h2>\n<h3><strong>Myth #1: Not only is it too expensive, but the costs are too unpredictable<\/strong><\/h3>\n<p>As the \u2018e\u2019 in the acronym implies, the first ERP software suites were complex, monolithic solutions designed for larger enterprises. They\u2019d 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\u2019t always predictable. So many SMBs still think ERP is still just too expensive for them.<\/p>\n<p><strong>Reality:<\/strong>\u00a0Today, SMBs can choose from a range of ERP solutions that are designed to be\u00a0<strong>affordable for smaller organisations.\u00a0<\/strong>They 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\u2019s modular architectures mean ERP can scale and grow to meet an SMB\u2019s evolving needs.<\/p>\n<h3><strong>Myth #2: ERP takes years to implement<\/strong><\/h3>\n<p>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?<\/p>\n<p><strong>Reality:<\/strong>\u00a0ERP 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\u2019s today possible to deploy an\u00a0<strong>ERP solution in months or for simpler cases, even within weeks.<\/strong><\/p>\n<h3><strong>Myth #3: The path to ROI is long and uncertain<\/strong><\/h3>\n<p>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.<\/p>\n<p><strong>Reality:\u00a0<\/strong>The modular nature and flexibility of a modern ERP system means that it doesn\u2019t 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.<\/p>\n<h3><strong>Myth #4: ERP is too complex for SMBs<\/strong><\/h3>\n<p>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\u2019re implementing ERP after using Excel or simpler finance packages for many years.<\/p>\n<p><strong>Reality:\u00a0<\/strong>Ease 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\u2019s 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.<\/p>\n<h2><strong>ERP is not just for big business<\/strong><\/h2>\n<p>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\u2019s an essential tool for any business aiming to achieve greater efficiency to increase operating margins, while leveraging improved insight to grow revenues. Today\u2019s solutions enable SMBs to unlock the power of ERP, so they can compete with larger companies on a more even footing.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The traditional thinking is that applying\u00a0ERP to a small business\u2019s\u00a0challenges is a bit like using a flamethrower to kill a mosquito or unleashing a tsunami&#8230;<\/p>\n","protected":false},"author":3186,"featured_media":147182,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"related_posts":[],"footnotes":"","_links_to":"","_links_to_target":""},"categories":[5597582],"tags":[3805972,5596573,5598859,176,5596651,5597756,5594146,19735,5598860],"series":[],"sapn-display":[5598742,5598740,45149,5598743,5598741,279685],"sapn-type":[45018],"class_list":["post-147181","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-erp","tag-complexity","tag-cost","tag-enterprise-resource-planning","tag-erp","tag-heinrich-de-leeuw","tag-roi","tag-seidor-africa","tag-smb","tag-time-to-implement","sapn-display-feature-hero","sapn-display-feature-spotlight","sapn-display-homepage-hero","sapn-display-news-hero","sapn-display-news-spotlight","sapn-display-hero","sapn-type-feature"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v26.9) - 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