Do you need an ERP?

Wondering whether you need an ERP?

Answer the question, 'Do you want to grow' and if the answer is yes, then YES you need an ERP.

Every small and mid-sized business needs the best in management software to stay efficient and competitive.

1) Improve Efficiency: There are countless processes and systems going on in a company. Lots of applications and databases that might not be integrated. Lots of information that might not even be formally documented. While SMEs have long been working like this in the past, in this competitive world, things need to change to improve profitability, productivity and growth.

ERP streamlines all the processes providing companies with the right information when required which in turn improves efficiency and reduces cost. It helps management take fast action to changes taking place in the market.

2) Getting rid of inconsistent and inaccurate information: Its important that different departments in a company deal with the same truth rather having different versions of it. ERP helps do just that. All departments are interlinked and deal with one source of information. It helps the senior management assess the company performance properly.

3) Helps in objective setting: Problems in business are quickly identified, objectives set and monitored easily because of the consistent data source.

Change focus from TCO to ROI

Time has come for the SMEs to change focus from TCO: Total cost of ownership to ROI (Return on Investment). Rather, for all endeavors that you indulge into, please focus on how you can extract the maximum from it rather than how much you have invested in it.

Traditional ERPs were so expensive that the entire focus was on the TCO. However, with the On Demand ERPs coming in, it is easier to shift focus to ROI. The investment in these products is so low that you can start looking at profits pretty soon.

Do not forget to incorporate the business benefits in the entire scenario. These benefits could be:

1) Improvement in the on time delivery
2) Optimum inventory
3) Less stock outs
4) Reduced administrative costs
5) Back office efficiency etc

While TCO is important to note, do not forget the benefits. Would definitely help you adopt new technologies faster and hence, move faster in the industry!

How Important is an ERP for SMEs?

As it turns out....very! Especially in these times of slowdown or turmoil or downturn or..whatever you might want to call it!

ERP is today a hygiene factor in companies...its not something you might want to think about. Its something you would not be able to do without.

If you are an SME, how can you think of growing or countering competition without ERP in place that gives you access to information, helps you manage your inventories, sales, purchase, vendors etc etc?
There were times when the cost of ERP used to scare the hell out of small companies. But today with On Demand ERP coming in, it has become extremely within reach and budget!

With as low as Rs. 25000 per month, you can get a full fledged ERP system installed. Which also means, you don't have to face a big dent in a go and then keep justifying the cost for the entire year!

With all this available at your disposal, you definitely don't have a reason to lag behind!!

Sysblitz.com: We are ready..Are you?

Integration is the word for Mid Sized Businesses or SMEs

Tough Economy brings cost cutting to many businesses on the first strike. But there are a few businesses that see it as an opportunity to put up a tough fight against its bigger counterparts. For them, its perfect time to invest in some IT expansion, improve efficiencies and hence, reduce costs and become more competitive!

What is the secret of success? Well, sometime back, the answer to this question was Information. But now, the answer is information AT YOUR FINGER TIPS!! To achieve success in the current economy, one needs to be really efficient and for that, its crucial that one has all the information required at the click of a mouse.

ERP does just that! It integrates all the different data sources to provide you with a single, sharp, analytical and focussed tool you can use for almost anything you want.
So if you have it in you, ERP is there to provide you a launchpad! well..not particularly a launchpad..but..ummm...its more like a spring attached to your shoes in a high jump...just not illegal!!!

Integration is the word. You just can't be waiting for information anymore or just keep waiting!!

On Demand ERP vs On Site ERP

This first entry to this blog.

I just could not NOT start it with what is ERP? Slightly stupid....but still...

ERP or Enterprise Resource Planning simply put is a way in which data and processes are put in one single system. Today, ERP can cover a wide range of systems like HR, Finance, SCM, CRM, Blogging, having an online store etc etc etc in one and these range of systems keeps on increasing day by day.

However, earlier, ERP used to be on site i.e. installed in the company itself! Imagine lots and lots of servers with the data put in the company.

With time changing, and with more comfortability and belief in the internet, this is done online. Which means, the hosting is generally off site by a third party. Seems like a very neat solution!! Is'nt it? well, it is...and here's why..

On Demand ERP

1) Offsite, third party hosting

2) Need Based Subscription, flexible

3) No capital Expenditure, very reasonable as the cost of servers etc is not there

4) Implemented in weeks

5) Anytime, anywhere access

6) Flexible Licencing

On Site ERP

1) On Site in the company premises

2) Very Rigid

3) Very Expensive with high initial expenditure (Dent on Bal. Sheets)

4) Long Implementation time

5) Limited access

6) Limited Licencing

On Demand definitely seems like a much better solution to needs unless you have made a BIG, DENT MAKING investment in on On Site ERP!

In our next entry, we move to SMEs. Do they need an ERP?