How an ERP System Helps SMEs Overcome Challenges
Years ago, resource management software was operated on huge mainframe computers and used to be only affordable to large corporations. After a long period of development, ERP software is now available in customisable packages and on a cloud-based platform, with more reasonable prices. At its more affordable price, an ERP system has now become a desirable solution for all types of businesses. Small and Medium Enterprises can now jump onto the ERP system bandwagon to run business with long-term vision and sustainable growth.
Here are the cases where an SME’s challenges can be overcome with an ERP implementation.
Dependence on few employees
Unlike large corporations, SMEs usually have smaller teams and fewer members to run the business. The limited staff may be required to complete all necessary tasks and sometimes play multi-roles in your organization. For example, the person in charge of Human Resources also takes care of administrative tasks, or the owner of the business may also be the manager who oversees different areas of the company daily. The heavy workload may affect staff performance as well as job satisfaction, which directly influences productivity. It is also challenging for the employees, as they are required to have multiple training and skill sets to accomplish their tasks completely.
Thus, SMEs’ productivity can only be improved with the assistance of technology, which automates processes. As an ERP system can offer data updates at real-time, managers can be assured that the operations information is being passed to all relevant staff, and is retrievable whenever needed. Altogether, your company can experience great efficiency and improved productivity even with a small number of workers.
Though small companies usually can operate with smaller margins than larger ones, they may soon undergo expansion which requires a large amount of capital. However, recently, Singapore’s SMEs have had difficulties in obtaining financing from banks and financial institutions, mostly due to reported losses. Therefore, it is critical to attentively manage your finances, especially during any expansion such as opening new offices or entering new customer markets. Fortunately, an ERP system can be your assistant to systematically store all your pertinent financial information. The pricelists, transactions and costs recorded in the system are automatically calculated into your revenue, profit, and margins. You will receive detailed reports on the operation performance depending on any required frequency (daily, weekly, bi-monthly, monthly, annually, etc.).
As a result, your management can closely oversee the business to reduce losses as well as assess the results of different strategies and make timely decisions, for instance, to cut down on expenditures of ineffective operational campaigns, or to order more of a popular-selling item. Acquiring an ERP system will not only solve SMEs’ financial troubles but also help them to build a long-term strategic plan for the future.
IT support requirement
Start-up companies usually have a small or negligible IT team to solve basic technical problems. As your business grows, your business database will accumulate but may be vulnerable since the number of cybercrimes such as ransomware attacks rose in 2017. Given the increasing sophistication of such attacks, your organization may need dedicated and professional personnel to take care of data security and system network to avoid data leaks or downtime. When adopting an ERP system, you will be supported by a long-term IT partner who will take care of your day-to-day IT maintenance, so you can focus your resources on business strategies.
Many SMEs are missing the opportunities of digitalisation and globalisation and thus, not reaching their full potential. In Singapore, SMEs make up to 99% of the country’s enterprises, employ 65% of the workforce and contribute more than 50% to the economy. To push the domestic economy, the Government has raised initiatives to SMEs by offering generous grants such as WorkPro Job Redesign Grant and the Productivity Solutions Grant, among others. This is a golden chance for you to bring in ERP technology to your business, improve productivity, scale up and become a bigger player in the field.
Talk with Synergix experts to discuss your company’s requirements and let us help you apply for the grants to digitally transform your business!