ERP Software

ERP for Small Businesses

Initially, ERP was not meant for small businesses.  Enterprise Resource Planning, which is what ERP stands for, evolved from Manufacturing Requirements Planning developed to help large manufacturing plants organize their manufacturing functions. From its inception, ERP had the ability to take on the same tasks as MRP and MRPII, but with many added tasks also. So, it follows that an ERP software system is a complete solution to the way a business’ operational functions and processes are organized; and by controlling all aspects it helps make businesses more efficient and effective.

Initially, these comprehensive software solutions were so expensive to buy and to implement that only large, and wealthy, businesses could afford them. Major, multi-national companies could take advantage of the benefits and cost savings generated by ERP software implementations, but small and medium sized companies could not.

Today, that is no longer the case. Over the last decade, many ERP vendors saw the untapped market of small and medium-sized businesses and began to design more scaleable products for lower prices. The ERP for Small Businesses market is still wide open, and according to leading industry analysts, it is the right time for small and mid-size businesses to adopt enterprise resource planning applications. Businesses that have not updated their financial, human resources, and procurement applications would be wise to look into meeting these needs with ERP software solutions.

ERP for Small Businesses has to be more than just smaller sized ERP. Small businesses usually have unique requirements for enterprise resource planning software that demand full capabilities without complexity. Vendors paid attention to this niche and tried to develop good ERP software to fill it.

The last five years have seen remarkable growth in ERP vendors selling to the small businesses. Today, there are more affordable options than ever among the ERP software field targeting the small and mid-size business, but they are not all the same. Small businesses need to comparison shop if they wish to find the one that will best fit their needs.

Another currently viable option for small businesses is a low cost ERP solution such as those provided by open source or cloud based ERP. Many of these can be evaluated at no cost. And, the good news is that the number of software vendors offering open source or low cost solutions continues to grow providing even more choice in ERP for Small Businesses.

Written by :

Amy Cruz