Before going into detail Explanation about ERP for SEM let’s see what is the base definition of ERP system?
What is an ERP system?
ERP or Enterprise Resource Planning system is defined as an integrated Business solution that offers a company with tools or modules which help to manage the decisions effectively. These tools offer you with the information of your organization as and when required in an easy way.
The above definition or explanation is very generic to simplify, An ERP system allows every individual to work more effectively; with the high degree of knowledge and responsiveness.
Why are ERP systems required?
Various departments work together to achieve organizational goals and “Change is the only thing which remains constant” Every moment changes in information appears and updated. It is difficult if one need to remember every change without the use of any software and therefore making the decision is also becomes difficult. Therefore ERP system helps you to make decision based on the current data and information updated in the software, which further helps you to make quick and effective decisions.
When you need an ERP system?
That is another important question asked by the decision makers in Organizations that when we require an ERP system in place? For this there are many reasons to consider an implementation of an ERP system some of them are:
- Things are busy and slipping through the cracks
- Poor Processes
- Poor financial performances
- Duplication of entries or mistakes in entries
- No forecast plans in production or manufacturing
- No evaluation tools for performance and so on . . .
Notes for Small and Mid-Sized Industry to remember:
SME or Small and Mid-sized businesses should remember that there are various aspects with respect to the implementation, some of them are the key people involved in the selection process of ERP system. Some of the thing before selecting the ERP system SME should remember is as follows:
- ERP which is implemented should offer information as an when requiring in a timely manner
- Increase of Productivity across various branches of the organization
- Important people should be less busy after the implementation of ERP system
- Flexibility in your Business process after ERP implementation is a key.
- Vendor selection is an important aspect of the implementation
- Proper improvement and communication at the bottom line after ERP implementation.
Facts: Many SME feels that ERP is a big investment for both times as well as money, and due to this many SME’s avoid switching or implementing ERP solutions. But the fact is that the longer they wait is higher the wasting your money and staff capabilities.
SME’s can implement ERP in various Phases or stages which will allow them to spread their cost in long run. Apart from that, there are many solutions out there which allow you towards ERP implementation at a low cost. Some of them are best suited for SME’s are in Open source category – SME can take the initial advantage of Open source ERP and then can move to Big software as the organization grows.
If you have any questions or are interested in ERP implementation for your SME, let us know using our contact form. We’d be happy to help.