The other day I met a fellow entrepreneur and got into talking about the perils and benefits of entrepreneurship in India. The meeting triggered a lot of thoughts that had been on my mind for a long time. I decided to address it.
One of the most common myths I’ve come across is: If you’re a small entrepreneur, you don’t need an ERP to manage your business. That’s not just completely and utterly wrong, but it also makes you start limiting the scope of your business to yourself. Your growth becomes second on your list of priorities as you struggle to manage all the tasks that an ERP would easily take care of.
If you don’t think you can grow, why should others believe that?
What is Enterprise resource planning?
At its most basic level, ERP software integrates these various functions such as managing inventory, accounts, and human resources, into one complete system to streamline processes and information across the entire organization.
ERP is essentially just setting processes. Most people undermine the value of these processes is set up. As the famous proverb goes, ‘A place for everything and everything in its place’; organizing and streamlining your business creates efficiency in daily activities and makes the company more self-reliant. Furthermore, studies show that the most successful organizations are largely process-driven, thus enabling them to achieve their targets more easily
The cost of success
The major concern that people have when it comes to ERPs is that they’re highly expensive and involve a lot of Capex costs. However, it only seems like a drawback when you forget that the benefits of introducing ERPs severely outweigh the concerns; ERPs should be looked at as an investment in your business’s future.
ERP is business management software that assists all the functions of an enterprise and synchronizes all resources and activities within an organization, it also incorporates as well as reorganizes the business processes, to make your organization more competitive and run smoothly. ERP more specifically, meets the internal and external demands of the organization.
A well-implemented and suitable ERP System can generate noteworthy efficiencies across your business ensuring timely business information, better customer relationships, a more cost-effective supply chain, and ultimately, augmented profitability. And did you know that 68% of organizations with less than $50 million in annual revenue use ERP and 60% of best-in-class organizations report improved profits as a result of ERP?
Your unfounded hesitations of today may be costing you tomorrow’s business
The advancement of Information Technology (IT) has made organizations of all sectors rethink their planning and managing strategies, in order to cultivate growth for their enterprise.
For growth, you have to operate in a wider arena and when you have MNCs as your clients, they require you to implement an ERP system to allow for tighter integration in their supply chain, which permits them to design and plan the production and delivery so as to reduce the turnaround time. Are you ready for that?
It is important that we make the best of the technology that we have at hand, and utilize it to maximize our productivity.
Now we can confidently say Myth Busted!