ERP for SME – why and why now?
For many the word ‘ERP’ conjures up an image of an extremely high priced and complicated set of applications that only a few understand and whose services only big organizations can avail. Over the last many years that I have been working as an ERP consultant I have come across many such instances wherein the managers of SME company are wary of ERP and ask ‘Can it be implemented for a small company like ours?’
With the present economic recessionary environment Small and Medium Enterprises (SMEs) which have been running on very thin bottomline must look at various avenues to reduce their costs and increase the operational efficiencies. The business applications provided by various ERP packages have over the last few decades evolved from just being a transactional system to one that provides functionalities built around industry specific best practices and standards. Notwithstanding the benefits an ERP may provide the IT and business executives of SMEs face the challenge of convincing the stakeholders that this is an investment towards an ability that provides better productivity which would help lead to better profitability, market share and / or customer service.
