ERP stands for enterprise resource planning and this software can be defined as a complete business software solution. The fundamental aim of ERP software is to assimilate all the systems of entering data and processes, as related to business.

ERP is also popular as business process management since it integrates all the different departments of a company and serves their requirements. It is an interface where data is inserted, processed, managed and extracted through few clicks of mouse. ERP helps in standardizing a business process.

If you look at the number of big ERP vendors now going after the small business erp pie you will know that isn’t the case anymore. Whether or not they can truly service the small customer will remain to be seen. There is no doubt more and more SME’s are looking for integrated systems to improve communication, reaction time and overall processes.

There are a number of reasons that have made ERP available to small business owners. Part of the reason for the huge cost of ERP implementation in the past was the fact that the technology was in the hands of big vending companies which had their hands full with equally rich clients. In recent times, however, the technology is available from smaller vendors who are able to serve small businesses. Moreover, even the big ERP vendors have consistently been developing programs that are affordable by smaller companies.

In addition to easier availability of technology, small business management software has been growing in leaps and bounds because of the profitability of small businesses in the recent past. Rapid growth among most average and small companies has resulted in strains on their software systems hence the need for ERP.
Most of the SME would like to deploy ERP in a step by step process where they will switch over one module after another, this makes the process easier and less cumbersome. To target SME market companies have started offering ERP software in suite, which allows the buyer to purchase one application with complete functionality of a particular department of organization like SCM, CRM, Financial management etc and with smooth and easy integration facilities with other applications. Instead of buying whole ERP for the organization switching over in steps is more attractive for SME units.

ERP can help reducing errors in data entry and management. If your company is plagued with inefficiency then what you probably need is an ERP to bring more order to the organization. ERP will ensure better management of resources and better work distribution.

For small business owners to make the right decision in ERP implementation, a careful analysis of ERP vendors is necessary. One of the easiest ways to find out whether a vendor will offer the service you require would be to obtain references from people who have used the vendor’s services. The references could be from people in the same industry or others offering similar services.

Implementing ERP can only be beneficial for a company and although it might require some initial costs and some time before implementing it successfully, it will soon pay off. The most important thing is to identify and analyze correctly the business processes that are to be integrated and to make every employee aware of the importance of an ERP system.

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