In these businesses, ERP systems are primarily perceived as "large" solutions that are expensive and time-consuming to purchase and deploy. For big businesses, not realising the benefits of effectively using the right ERP platform usually means the difference between mediocre and exceptional performance. In smaller businesses, the difference is often between surviving or not.
In order to grow the economy and create jobs in South Africa and Africa at large, it is essential that small businesses - which constitute the engine room of our economy - are aware of all the options open to them to make them and their operations more efficient and effective.
Choosing an ERP solution is a decision that impacts on every aspect of a business. In fact, from a systems perspective, it is the single most important business decision there is. It is at the very heart of the business and choosing an ERP solution essentially comes down to scaling and optimisation, but more importantly the trust and relationship you have with the vendor.
Getting this decision right will make what is a very challenging process a lot simpler. Getting this decision wrong means all the difficulties in your business will multiply and the full potential of your business will be very difficult to realise. With this in mind, there are important factors all businesses must take into consideration when choosing the right ERP solution:
When the right ERP solution is implemented to support a business' unique processes, that business is enabled to function faster and more efficiently. Transactional information is recorded, stored and made available for valuable analysis. It is this information that enables a business to optimise operational processes to support and realise its long-term vision for growth;
The market is tight and businesses cannot afford to make emotional decisions and remain competitive in both the local and global markets. If the platform is not driving efficiencies within the business and showing a clear ROI, this is a strong indicator that the evaluation process was not objective;
ERP forces disciplined business processes and removes some of the old "flexibilities" that some employees may have become accustomed to. Don't be swayed by resistance to change. Keep an open mind and avoid staying in your comfort zone without thinking of the bigger picture;
Consider how sophisticated and experienced the potential users are. Ease of use and ease of learning are two of the biggest barriers to effective implementation of ERP, so always keep the user in mind when choosing a solution.
Talking to other users of an ERP solution really matters when it comes to selecting the right platform for your business. They will give you insight into the real experience; balancing the "vendor sold" experience and helping you make an informed decision;
At the end of the day, it is growth, efficiency and peace of mind that are the drivers of a decision to purchase ERP. If a business doesn't want to achieve these goals, it can forgo moving to an ERP system - but its business will likely fade away in the process.