ERP SOFTWARECHALLENGESFACING SMES

There are many reasons why an ERP software solution is beneficial for a

business – no matter the size. However, there are also many challenges

that Small and Medium Enterprises are likely to face that can prevent

business owners from even considering to implement an ERP solution

at their organization. ERP implementation is a joint effort between the

ERP Service Provider and the company; which can take time, effort,

support, training, planning and discipline.

Here are some challenges that can make SME executives hesitant to

begin ERP implementations at their company:

ERP Implementation is complex Our small team is too busy

Staff is resistant to change

Our IT budget is very limited Not enough human resourcesto support an ERP system

No need for an ERP system - weare just a small business

ERP system implementations are knownto be complex. There are many phases inthis project [IT analysis & consultation;ERP selection; Planning; Installation &Setup; Testing; Deployment; Training..]which must take everyone’s involvementand support. Business processes andprocedures may change, work habitsmay be broken, budgets may bestretched but if all planned right and ifthe right ERP solution is chosen, this‘complexity’ can be avoided.

Employees at small businesses areusually too busy working towardsattracting new customers. An ERPimplementation project is most likely toomuch of a distraction for the team andthere’s just no time to allocate to such aproject.

Years ago, only large enterprises used toimplement ERP systems. Nowadayshowever, ERP adoption among SMEs hasincreased. Unfortunately, many smallbusiness owners are still hesitant as theybelieve there is no need for such a systemat their organization; they can simplywalk over to their employees to get thereports they need. Unfortunately, thisisn’t the most efficient way, especially asthe company begins to grow.

Implementing an ERP solution is a verybig change for the entire organization.User resistance is likely to occurespecially if new processes andprocedures are introduced. Thisresistance has the capability to preventan implementation from beingcompleted successfully and for thebusiness to reap the benefits of an ERPsystem, as hoped.

Having enough financial resources is oneof the biggest challenges that SMEs facewhen deciding to implement an ERPsolution. In many cases, their IT budgetsare quite small; which either leads themto end up with the wrong solution(s) fortheir needs or from preventing themaltogether from implementing a system.Unfortunately, most accountants do notfully understand IT and therefore do notmake the best IT investment decisions forthe company.

One of the main differences betweenSMEs and large enterprises is that Small& Medium organizations are more likelyto experience staff shortages and manywill seldom have an on-premises ITteam. Not having enough employees anda lack of IT knowledge can be a bigfactor for companies turning away fromERP.

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The above 6 challenges have the power to stop SMEs from successfullyimplementing an ERP suite to improve their business processes. Fortunately, thereare ways to overcome them. User resistance can be prevented with user training &management support, ‘Software as a Service’ & a qualified IT consultant canreplace in-house IT departments and proper planning & budgeting can ensure asuccessful ERP implementation.