In the era of business expansion and diversification, understanding the business world’s changing dynamics is critical for survival. Particularly true for MSMEs, Enterprise Resource Planning (ERP) systems are now becoming a viable component of this sector for the system’s ability to manage every business segment from accounting, CRM, and supply chain to purchasing. A recent study shows that the ERP market will continue to be in a state of constant expansion with the total market size expected to reach beyond $49.5 billion by 2024. Prominent players in the ERP systems providers, including SAP Business ByDesign offer end-to-end business suite to unify all business operations. The service by SAP is built for companies looking to grow rapidly. Considered suite-in-a-box, mid-market enterprises can benefit from this quick-to-implement package at affordable rates. As digital is now taking precedence, 53% of the IT decision-makers consider ERP a priority investment and CRM.
A prominent reason why MSMEs consider ERP as a giant leap of investment is the cost involved. While many assume that ERP is accounting software, it is much more than that. A robust ERP system ties the different business processes from accounting, sales orders, inventory management, procurement, payroll, and other operations. Since the information is available through a shared database, there is better control as information is available in real-time. In a recent survey, it was observed that 49% of the companies witnessed an overall improvement in the business process upon ERP implementation.
MSMEs focused on expansion in the future must consider investment in ERP for the following benefits:
– Return On Investment (ROI)
ROI is one of the main reasons to invest in ERP systems. As businesses grow, the complexities of the processes increases. Without a proper system in place to monitor them, having full control could become difficult. Most businesses that adopted ERP systems have witnessed
- 40% reduction in IT costs
- 38% change in inventory levels
- 35% improvement in cycle time
– Business goals
Business decision-makers must have the ability to review all the necessary information to make an informed decision. While the traditional reports have helped businesses in the past, the economy’s rapidity pushes the organizations to rely on better systems like ERP to give all the data in a single platform. It was recently observed that the top three business goals for ERP implementation are improved performance metrics, higher cost savings, and efficiency in business transactions.
The changes in the market are hard to predict. The only constant is the business’s capability to adapt to these trends. ERP software allows small businesses to be agile and flexible. The software will enable users to modify data like a stock requirement that will automatically reflect on the sales funnel and give a real-time update on the revised sales figures, outstanding orders, among others. While businesses managed without these features in the past using spreadsheets, there was a severe impact on the business process that led to poor planning, inventory storage, missed shipments, among others.
To successfully implement ERP, partnering with a reliable provider is critical. Product knowledge, infrastructure capability, and cost-efficiency are some of the parameters to be considered while selecting the right ERP partner. Indigi Consulting is a name synonymous with SAP services. Established in 2018, Indigi consulting and solutions have a strong foothold in North East India. As the only SAP Silver partner in the region, Indigi has had the privilege to work with several renowned brands, including Vivo, Brahmaputra Cracker and Polymer Limited, Assam Carbon Products Ltd., among others. With over 30 skilled employees, the team offers a range of SAP services, including consulting, implementation, support, upgradation, and rollout.
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