Small and medium scale establishments should be agile and sustainable to be profitable in functioning as they would be operating on a smaller budgetary scale from which they should be able to attain maximum profits. The business management operations in the earlier days were complicated and had a sophisticated mode of operation. However, the inventions of digitalization and developments in electronics and communication technology have contributed to the development of many business management solutions. Enterprise and resource planning software was one such application that has benefited from the development. Although established at the end of the last century the ERP software became widespread in operations during the wake of the current century.
Small and medium scale establishments operated based on a budget and a default plan of operations which they should stick to attain the maximum projected profits and productivity. The ERP solutions available in business management will help to attain this with ease. Although the ERP solutions available can be fled to be operations to suit the SMEs certain ones have been specially designed to function in them. Odoo ERP one of the advanced and new generation ERP solutions available will be an apt tool for business management operations in small and medium scale companies. The user friendly as well as the strict management approach on the business operations will ensure that you run your company operations with the best tools and practices available.
In the earlier days, the ERP solutions were considered expensive and only suitable for large scale corporations or establishments. However, as time progressed the ERP solution became beneficial for all sorts of business operations along with any scale of business management. Today there are ERP solutions available for sector-specific operations to meet your requirements in functioning. Thanks to the rise of cloud-based hosting as well as the Software as a Service (SaaS) model which has helped towards it. One other misconception while considering ERP solutions in SMEs will be that it is for only corporate solutions and it's expensive. On the contrary,
You can read about certain misconceptions regarding Odoo ERP in the following blog: Common Misconceptions about Odoo ERP Software
Well, I am here to address certain statistical data of ERPs regarding small and medium scale installations. Here in this blog it will be pointed out and well explained to you to have an understanding of which implementing an ERP in a small and medium scale business will be beneficial.
Certain statistical explanations
Here is an insight into certain statistical aspects on account of ERPs in small and medium scale enterprises. This will provide you with an insight into the capabilities of ERP software which will help you in the decision-making process:
- Around 65% of SMEs are violating the ERP consulting services across the globe
- The SMEs are about to contribute to around 8 percent growth to the global ERP market which is due to functional capabilities that ERP solutions will bring in.
- The above aspects are mainly due to ERP business management which reduces operating cost, improves efficiency, and decreases inventory waste.
- More than 95 percent of startups and emerging businesses excelling in their respective sectors use ERP solutions or are willing to.
- ERP solutions in SMEs will reduce the decision making time by more than 35 percent
- ERP solution standardizes back end operations of a company 77 percent
- ERP software minimize operational expense by 11 percent
- This software operates in real-time providing 48 percent more visibility into data and insight into operations
- A study on successful ERP implementation in SMEs depicted that it took around 11 months after implementation to attain the real benefits of investment payback.
- ERP solutions are preferred over application-specific tools of operations in a company as it acts as a better collaboration tool which improves the efficiency by more than 35%
These are certain aspects of the ERP and its statistics on operating in a small and medium scale establishment. As we are closer to that let's move on to certain challenges that you will face while operating an ERP in your business.
Challenges of using ERP in a business.
The ERP implementation will be considered a huge investment in terms of small and medium-scale installations. This is one of the major challenges considering an ERP operation in SMEs however ERPs are cost-efficient and will pay back to the company in the long run. Here is the graphical representation of certain other challenges allocated and the percentage of risk involved in them.
The qualitative analysis of these challenges is described based on the study conducted on ERP operations in small scale installations.
You can read the following blog to understand how ERP implementation is a challenging risk: Why ERP implementation is a challenging risk
Although these challenges may not be faced by you if undergoing the process in a standardized way. Availing the best service and the ERP will rectify them in the long run of the operations allowing you to function your company on your terms. Cybrosys Technologies the leading golden partner of Odoo ERP will ensure that you meet your criteria of business operations with an efficient and reliable Odoo platform. In the next section, we will discuss the budgetary aspect regarding ERP software, especially in small and medium-scale installations.
The budgetary aspect of ERP in SMEs.
Considering ERP implementation in an SME the budget is to be specific and the implementation aspect mainly revolves around it. You can analyze the following chart which despite the budgetary aspects involved with Odoo.
From the chart, it can be understood that over half of the ERP implementation in SMEs goes over the budget and around 40 percent of them are below budget and do not affect the financial aspect of the company. However, certain ERP implementations are on a budget that will not create a financial problem in the company.
Regarding Odoo there are various aspects involved with the pricing of the ERP you can understand it from the following webpage where the aspects are being described in a clear cut draft: Odoo Pricing