What is ERP and how can it help small businesses?

Business executives are commonly confused with the term ERP. Thinking it is something that you use not something that you do.

What is ERP and how can it help small businesses?

Meanwhile, the reality is your resource planning should have started on paper long before it was integrated into a system and all the system does is manage and automate this for you.

Misconception

The common assumption is that only big companies ‘need this’ is not true. Every small business from 2 staff and up that have a hunger, want to understand how they make money, where they are going wrong, and how they can improve.

Knowing your business information helps you understand how you can grow; how do you maintain your margins and if you are going broke in the process of growth.

“The common assumption is that only big companies ‘need this’ is not true”

The cost is not the point, as it should be relative to the size of your business and if considered appropriate, it will always be affordable.

The problem

Smaller solutions like Xero, MYOB and Quicken don’t answer all the requirements of small business. Many SMEs adapt by adding plugins to fix holes in their features and workflow. Clients have been known to add 4-5 external plugins which add expense and license costs to the base platform. We find know it they are spending more than a business that implements a proper ERP solution.

Time is also not respected with many SME’s wanting quick solutions instead of proper solutions. Entry solutions like Xero are quick to implement vs an implementing your ERP takes time and patience. A small business ERP implementation that may take 12 days should still be spread over a time to ensure your team is evolving with the system and supporting the change.

What is Microsoft’s solution?

Microsoft NAV renamed to Business Central in November 2018, is a platform Microsoft has spent the last decade turning from a solution for large business into a platform that is applicable for any size business, reported to invest in excess of over USD 1 billion dollars annually in research and product development on the platform.

 

 

The setup, now been developed into a ‘rapid deployment’, can be completed in weeks instead of months. Upfront costs are attractive as Microsoft now provides finance options for spreading this over a 3-year period with low interest.

The Rightsize approach – 4 steps

Our standard engagement with clients includes:

  1. We engage in a fixed cost basis – not a fixed time basis. This means we agree to project scope and allow for variations (T&C’s apply) which usually catch you out to ensure the budget committed is honored.
  2. We start the project by documenting the business process in a picture format called ‘swim lanes flowchart’. We take this from lead to opportunity, operations, and finance. Customers appreciate having documented their workflows it provides them clarity visually in what their next steps should be. We then document this into the customer ‘Business Operating System’, a word document that outlines the clients’ touchpoints and gives surety what is going to be delivered is a specification for the project team.
  3. We take time to implement with your team providing a hands-on supported approach that enables your team to learn and engage at a decided pace that is healthy for your team instead of force-fed; similar to drinking water from a fire hydrant; which is never good.
  4. We give our clients a free support period post-implementation for 90 days giving you peace of mind that what they miss won’t be dropped.

Where do you get help?

  • I highly recommend you find a business advisor who understands the Microsoft Business Central. They are available and they exist to break down the barrier of knowledge and help you picture what your business would look like with a proper system; OR
  • If you don’t have an advisor – talk to us or send me a private message. Rightsize has a division set up to specialize in this platform and you can reach them here
 

Rightsize Technology is your IT department as a service. Talk to our experts today to discover how we can help you understand your ERP.

About Rightsize:

Enabling your business to grow efficiently and effectively – we’re the Rightsize for you.

Small businesses struggle to budget their IT operation and often spend inefficiently with a less than great return on their investment. Rightsize Technology understand: we deliver a minimum 30% reduction on IT overheads as a dedicated outside IT department for our clients. Our unlimited 24×7 support, both on and offsite increases their business productivity and capacity, enabling their business to grow efficiently and effectively – we’re the Rightsize for growing small businesses. Talk to our team today for more information.

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