The best performing small and medium size enterprises (SMEs) have similar approaches to the utilization of their ERP systems. This piece covers the final two of those characteristics.

Will smaller companies drive the recovery?

If so, ERP will play an important role. (Part 5)

Technology. ERP implementations take discipline. Year’s accumulations of well-ingrained legacy applications must give way to new erp modules as part of a fully integrated ERP system, and the old data carefully migrated to the new system. There is always temptation, rationalized with the “if it ain’t broke, don’t fix it” bromide, to leave the CRM system, or some other well-liked application, in place. Big mistake. The best run SMEs, the ones that get the greatest business benefits from the ERP systems, have a fully integrated system, meaning a complete and auditable system of record with an ERP backbone and all of the active modules built with the same development tools and on the same platform. This enables executives to get a comprehensive view of the enterprise with no chance that critical data is stuck in some disparate silo, inaccessible or incompatible with all other data. In a fully integrated environment, decisions become more informed, plans are more realistic and investments are more tactical.  Of course, it is extremely important for the integrated data to also be accurate data, The Aberdeen Group report on which this series of articles is based shows the best in class SMEs are twice as likely as all other companies surveyed to have Master Data Management (MDM) integrated into their ERP system.  1

Part of having real-time data is the ability to access it wherever and whenever it is needed. Best in class SMEs are more than twice as likely as all others to have access to ERP from mobile devices. In today’s 24/7 global economy, mobile workers must be supported, untethered from their desks and in whatever time zone they are in.

Performance Management.  What gets measured gets managed, the old saw goes. In the case of SMEs this concept is especially important because as they grow new challenges emerge, old ways of doing things no longer work as well and more is at stake.  For them, it is especially important to establish key performance indicators and develop real-time visibility into how they are performing—and underperforming. The Aberdeen Group study found that leading SMEs, those reaping the biggest gains from their ERP systems, were twice as likely as all other companies surveyed to have the ability to measure quantifiable business benefits derived from the overall implementation of their ERP system. Such vigilance enables them to get the most from each module and to see whether the full feature set is being adequately leveraged.

1  Source: The Aberdeen Group Q1 2001 Business Review

Lastly, best-in-class SMEs are 60% more likely than all others to have the ability to measure the influence marketing activities have on both closed sales and the
pipeline. To some small businesses, marketing is a luxury. But as we saw at the
beginning of this series, improve brand visibility and perception was the second highest goal for SMEs in 2011. Measuring results is central to maximizing the effectiveness of this nascent interest in investing in brand development.