ERP for Small Business

The high costs of implementing Enterprise Resource Planning software and the numerous well-documented instances of disastrous ERP failures have led many professionals in the industry to conclude that targeting ERP for small business simply does not make sense. There are however, a growing number of leading ERP vendors who are making the decision to cater specifically to the ERP needs of small business. When asked, most ERP software vendors give one or more of the following three reasons why they think targeting ERP solutions for small to mid-sized business makes sense.

Competition – the crowded ERP vendor field

It hasn’t always been the case, but the ERP vendor field is now a crowded one. The list of ERP vendors has been steadily growing and competition for ERP customers, big or small, is stiff. ERP vendor competition has been a blessing for small business. Often, small businesses now have several competing ERP vendors to choose from.

Small companies in specific business sectors or verticals are readily finding ERP vendors that offer enterprise applications, systems, or solutions targeted specifically to meet their needs. Whether the small business client's focus is on manufacturing, financial consultancy, human resource management, or distribution systems, there is an ERP software vendor that provides a targeted solution.

In order to remain viable, ERP vendors know they need to compete in this ever tightening market place. Even the major players in the ERP software arena such as Oracle, Microsoft, and SAP are now offering solutions that are directed at smaller businesses.

Demand – the growing ERP for small business market

A recent Forrester Research report states that the small business sector will represent the most dynamic and innovative growth area for ERP software sales in the coming years if not already. The small business sector is growing and is expected to drive the growth and expansion of our economy.

As the economy improves and gross domestic product grows, so will the number of small businesses grow. The second quarter 2010 Small Business Indicators as released by the Small Business Administration all show positive trends in terms of the number of small business deals and total dollars invested in small business.

To capture as much of this growing small business market demand for ERP solutions as possible, ERP software vendors know they need to target ERP for small business.

Tangible and transferrable benefits for big business clients

In the ERP arena, it is a common misconception that if the client business is small, their ERP needs are also small. Nothing can be further from the truth. Just because a business is small, it doesn’t mean that their ERP solution needs are simpler and thus offer less of an opportunity for ERP vendors. The ERP solution needs of small business are basically the same as those of big business, perhaps even greater. Greater because of the need to be lower in cost and less complex in terms of implementation.

ERP Software

The valuable lessons learned by ERP vendors as they cater specifically to the needs of their small business clients are directly transferrable to their big business clients. For example, most small businesses may not have the internal resources to fully support the implementation of an ERP solution. The ERP vendor often ends up providing additional resources and customer service, all at a lower cost to accommodate the smaller client’s limited budget. The best practices and cost cutting measures that ERP vendors glean from supporting a small business client can be applied to their larger clients.

Any one of these three reasons alone would be enough to drive ERP vendors to focus on ERP for small business. Taken together, they create a solid mandate that ERP vendors cannot and have not ignored.
Three Reasons Why ERP Vendors Should Target ERP for Small Business

The high costs of implementing Enterprise Resource Planning software and the numerous well-documented instances of disastrous ERP failures have led many professionals in the industry to conclude that targeting ERP for small business simply does not make sense. There are however, a growing number of leading ERP vendors who are making the decision to cater specifically to the ERP needs of small business. When asked, most ERP software vendors give one or more of the following three reasons why they think targeting ERP solutions for small to mid-sized business makes sense.

Competition – the crowded ERP vendor field

It hasn’t always been the case, but the ERP vendor field is now a crowded one. The list of ERP vendors has been steadily growing and competition for ERP customers, big or small, is stiff. ERP vendor competition has been a blessing for small business. Often, small businesses now have several competing ERP vendors to choose from.

Small companies in specific business sectors or verticals are readily finding ERP vendors that offer enterprise applications, systems, or solutions targeted specifically to meet their needs. Whether the small business client's focus is on manufacturing, financial consultancy, human resource management, or distribution systems, there is an ERP software vendor that provides a targeted solution.

In order to remain viable, ERP vendors know they need to compete in this ever tightening market place. Even the major players in the ERP software arena such as Oracle, Microsoft, and SAP are now offering solutions that are directed at smaller businesses.

Demand – the growing ERP for small business market

A recent Forrester Research report states that the small business sector will represent the most dynamic and innovative growth area for ERP software sales in the coming years if not already. The small business sector is growing and is expected to drive the growth and expansion of our economy.

As the economy improves and gross domestic product grows, so will the number of small businesses grow. The second quarter 2010 Small Business Indicators as released by the Small Business Administration all show positive trends in terms of the number of small business deals and total dollars invested in small business.

To capture as much of this growing small business market demand for ERP solutions as possible, ERP software vendors know they need to target ERP for small business.

Tangible and transferrable benefits for big business client