When you run a small business, you're always on the prowl for ways to make your business run more easily and serve your customers enhanced. You want it to grow and generate increased returns on your investment. You're also looking for ways to streamline operations and get better the efficiency of your business.
Enter enterprise resource planning or ERP.
ERP is software. When implemented, it takes the place of different information systems in unreliable departments of a business. It replaces departmentalized databases with programs that work together, using a single, shared database. It allows for the integration of varied business functions less than one single database umbrella.
With ERP, custom business functions such as order processing, financing, inventory and production control combine across one common technology platform. A single database can service the entire small business, integrating departmental activities and streamlining the business process.
The major benefit of an ERP system is that it allows the different departments of your business to share significant business information. But, like everything else in life, there's also a downside to initiating an ERP system in your business.
The purpose of an ERP system in a small business is to automate primary business processes and streamline others. Some of the positive points in favor of a company implementing an ERP system include the following:
Implementing an ERP system across your business is a serious undertaking. Not only can it be time-consuming to get up and running, it can also be expensive. Some of the cons of switching your business to this type of management system include the following:
In the end, whether your small business can profit from the implementation of an ERP system will depend on how much time, effort and cash you're willing to put into the installation and training necessary to make it work.
As with all major business decisions, in the end, it all comes down to you.