ERP systems remain a big talking point in small businesses

With growing competition and changing market and customer needs, businesses of all sizes are being forced to adapt to new technological trends. Keith Fenner, Sales Director, Softline Accpac, says SMEs continue to take a great interest in enterprise resource (ERP) systems. The reason is simple. ERP enables agility.

So, what exactly is agility and how important is it? Fenner sums it up as the ability to respond to new opportunities or threats - on the fly. Business challenges can only be solved by acting with agility, and much of this involves striking the proper balance between the introduction of leading-edge technology and the pragmatic application of IT.

“What businesses are looking for today is efficiency and quick systems implementations that deliver real business benefit. Long, protracted implementations and systems that require more staff and time will not fly in the downturn. Organisations today want better management information, improved customer service and real-time data to make informed decisions and be agile in executing these.”

The deployment of ERP as part of a business strategy not only serves the purpose of cost cutting for SMEs, but also brings in scalability, operational efficiency and performance in a business. In the past, the mere mention of ERP triggered thoughts of very large organisations with huge budgets and large, dedicated resources. However, the introduction of new ERP versions in the market makes it possible for SMEs to find the best, right-fit solution for their industry and, above all, for their specific operations, Fenner says.

“Much of the driving force behind the SME sector's interest in ERP systems is that many are expanding globally and, therefore, need a 360-degree view of their business, as well as a grip on the complexities of multi-legislation, language and currency, all of which a world-class ERP system delivers.”

On the cost of an ERP system, Fenner says the price tag remains relevant to value. What is becoming prevalent among vendors is finance and hosted software options, which reduce capital exposure and preserve cash.

Software as a service (SaaS) isn't new, he adds. It's a deployment option. If a customer likes your product, but wants it hosted, then it's as simple as that. A SaaS and a managed services offering are crucial for vendors today. However, there has been more interest in the latter as the mid-market is more complex, and complexity breeds individuality, which means generic software is not the best option, especially since integrations are often needed to other systems.

“Businesses want real returns - fast - or they may as well have used the cash elsewhere. It is crucial with our customers that we understand their requirements and apply the appropriate methodology to deliver the necessary results.”

Fenner concludes that, above all else, an IT investment must have a clear future. This is why ongoing support, training, a help desk, and upgrades are important. You don't get this with open source software, where there is often little in the way of vision, roadmaps and future investment.

“Software vendors operate on sales and maintenance, and these drive new products and solutions for end-users. The concept of free software is seldom seen in the ERP space, as customers need the support infrastructure that a maintenance-based business offers.”