The Relevance Of Erp Systems For Smes

ERP systems can be said as one of the revolutionary innovations in terms of offering the SMEs a platform to tackle the competitive demand for the swiftly growing global market place and to success and flourish for a longer period of time in regards to: “Enhanced customer relations and management, improved operational process time, better quality, growth in regards to sales volumes, better margins, minimized services developmental process, Less manpower requirement for daily work processes, enterprise resource planning (ERP) execution plays a key role while improving core processes in SMEs. On bigger picture, Most of the big organizations are largely dependent on the various SMEs and that could well be the reason why they are been approached by most of the ERP vendors. So while it was earlier been assumed that ERP systems would be feasible to only big scale business concerns, SMEs are largely encouraged to introduce ERP implementation. As companies started growing and coming out as big performers along with greater efficiency, they got more attracted towards investing in the ERP systems alongside.

Moreover, as the medium sized firms started growing, they learned about operating in a distributed environment and then experience propagation of ERP and other enterprise applications. We can list the following main reasons why SMEs need ERP:

1. Transparency: While every business is meant to earn profits, most of the medium sized business concerns are tend to falter quickly in the absence of instant profits. That is the reason they always go for a quick go thorough across the whole organization and its processes to identify which products, departments and customers are raising profits and which ones are not. Moreover, they got to track their cost factor as well in this case. That’s where a reliable and well executed ERP system plays a crucial role in the timely executions of core business strategies.
2. Trustworthiness of Data: The Reliability of the Data plays an important role in the decision of implementing an efficient ERP system. Only when the data within the system can be trusted for a longer period of time, the following steps can be executed.
3. Incorporation of new technologies: While most of the medium sized business concerns work big time towards getting rapid growth, tackling competition , launching new products and services, in order to secure more businesses while maintaining the existing one, The execution of a best in class ERP solution enables a rapid implementation of innovating technologies i.e. mobility, Business acumen & multi level sales.
4. Reduced Operational costs: An efficient ERP system would ultimately result in lowering the overall operational costs of the business concern and thus providing an additional capital benefit to the organization I n the longer run. It doesn’t matter whether you are an SME or a bigger business concern, once all the business functions would be streamlined into a common centralized system, it would result in reducing the costs related to its management and execution.