Why Small Businesses Shouldn't Be Afraid of Using ERP?

ERP (Enterprise Resource Planning) has been in existence for a little less than five decades now. It has helped businesses expand their territory from local to global, which is a necessity for any business to survive in today’s economy. With ERP, businesses are effectively managing their products and services, regardless of geographical and physical boundaries.   

What is ERP?

Broadly speaking, ERP refers to a category of business management software that can be used by an organization to collect, manage and interpret data from their business activities. The ERP system gives businesses the ability to streamline their activities. The basic purpose of using an ERP system is to facilitate a central repository to improve the flow of data across the organization. ERP systems also eliminate data duplication by providing data integrity.

Be it real estate ERP solutions or the same employed in the manufacturing industry, there are numerous businesses that take advantage of this technology.

ERP in small enterprises

When you own a small business, you are always concerned about running it smoothly and effectively. You are obviously looking forward to having more returns on investment. While the legacy of ERP systems was not cost-effective and hence small businesses could not use them, the newly developed cloud versions have come as a blessing for small and medium- sized enterprises. With the evolution of SaaS technology, small enterprises can equally be benefitted as the larger ones. A cloud- based ERP solution can be put into action rather quickly, with no CapEx investment.  

Benefits of ERP systems for small business

Integrating the information

ERP helps business to integrate the flow of information across all its channels. It manages business operations in such a way that the transactions align with the financial systems of the company on real-time basis. This allows the organization to view the financial implications, as and when required.

Transparency

With ERP systems, there is no need of having separate information systems by each department in the organization. All the data can be shared and accessed by every department, alike, which in turn enhances productivity by eliminating the need to re-enter or export data.   

Flexibility

One of the key benefits of using ERP systems in small business is flexibility. Needs of the market change every day but with dedicated ERP software, business owners can make adjustments in data management very easily.

Decision- making

It is not possible to take right decisions in the absence of accurate information. In a small business, information is readily available, thanks to the well-functioning ERP systems. This allows management to take timely decisions that are necessary for sustaining the business for the long term.

In India, every business, small or large, is employing technology solutions like ERP for resource planning, project management, and customer service. For an instance, the evolution of proptech in India has significantly changed the way real estate companies used to carry out their business operations, resulting in tremendous speed, quality and, cost-efficiency. In the same way, health tech is responsible for transforming the healthcare sector. All in all, with solutions like ERP, technology promises a better future for every business.