Even a few years back, enterprise resource planning or ERP seemed like a relevant term for big companies and brands, but that’s not the case anymore. Small businesses are being forced to consider enterprise resource planning software as one of the basic ways to transform their business setup. From finances and production to management of relationships with clients and employees, enterprise resource planning can help in a number of ways. ERP software creates one platform to integrate everything, and uses technology in the most effective way to get required results. This brings us to the question – What are the pros and cons of ERP software for smaller brands and businesses? Here’s our take.
- First’s things first, with options like Microsoft AX and other ERP software solutions, it is possible to bring scalability within the enterprise. It allows businesses to have considerable control on how information and data is collected and used.
- ERP software is also helpful with regards to decision making. It kind of integrates various departments, and as such, there’s a more collaborative workplace. Finance department will know how finances are being used, while the inventory department knows when to order stock and check for supplies.
- There is also no denying that ERP software does reduce manual work, use of time and effort. A lot of the tasks are customized and automated, which is extremely useful for smaller businesses, which are already grappling with limited resources and manpower.
- ERP software undoubtedly helps in enhancing business performance, by using more of automation. Most of the advanced software solutions use cloud-based setups, which ensures that integration and implementation remain easy for smaller brands.
- Data management and protection are aspects that concern both big and small brands alike, and as discussed earlier, ERP software does offer considerable control to businesses as how they use, access and manage data.
On the flip side
For small businesses, the biggest concern is the cost of investment. ERP software isn’t always cheap, especially when you want to get the right product with extended features. ERP software implementation is also something that needs more understanding. Also, the results and advantages of using such systems are only evident after a while. It may take time before you can evaluate how ERP software is helping your business. There are also additional costs involved, as far as updates, upgrades and new features are concerned.
Taking the call
Whether your business needs ERP software depends on many factors, and there are companies that can help you take a call on known options and brands like Microsoft. The idea is to clearly understand if the ERP software will work well for the existing setup and the kind of tailored features it can offer. Costing is also another factor to consider, although small businesses don’t have a choice but to opt for ERP software, mainly because everyone is doing it. To stay in competition and to make the most of automation and easy integration, ERP software is necessary in more ways than one.