The Common Drawbacks of Selecting ERP Software for Small Business
Despite the technicalities of running a business, running a business can be boiled down to efficiently managing business processes. Business processes are looked at as the building blocks of a business which include sales and marketing, customer services, and virtually everything else in between. Managing all of these processes not only requires time, but it also requires a good chunk of manpower that may take away from other areas of a business. In other words, it requires enough attention from employees to run efficiently.
This is exactly where the main problem of running business processes stems from. Especially in the case of smaller businesses, most businesses simply don’t have enough resources to allocate enough time to every business process they have to manage. Instead, they focus on the more important business processes such as sales and customer services as a way to make for the losses in other areas.
As adverse as that may sound, there is a solution to managing all of these processes without having to deal with the hassles that come from them. The answer comes in the form of ERP software solutions. In a nutshell, ERP software for small business integrates the management of their processes using real-time resources such as custom application development.
However, choosing the right ERP system has proven to be just as if not more important than having one at all. With different systems having unique ways they can help businesses apart from common custom application development capabilities, it is crucially important to find one that will help you solve any immediate hurdles your business may have. As a way to help your business find the right system, let’s take a look at six common drawbacks of selecting ERP software for your business.
#1: Selecting A Software Based On Capabilities
One of the most commonly made drawbacks of choosing an ERP system is selecting one based on their capabilities. We have to remember that their capabilities don’t mean anything if they can’t help you solve any immediate business process problems you have.
#2: Not Factoring In Cost Of Use
Another drawback of selecting software is not factoring in the cost of using it. In the long run, not factoring in this cost can take away from how efficient it is ion helping your business management processes.
#3: Forgetting The Costs Of Software Training
Another crucially important drawback of selecting ERP software is forgetting the cost of software training. Even if an ERP system has the most friendly user interface, it still requires some financial investment to learn its full capabilities. Doing so will eventually benefit your business by paying itself off in return.
#4: Not Investing In Software Maintenance
No matter how good an ERP system is, all systems are susceptible to technical issues. This is why not investing in software maintenance is one of the biggest drawbacks you should avoid. In extreme cases, not backing your system up with software maintenance can result in the loss of any progress you made from using the system.
#5: Emphasizing Price Over Business Needs
Emphasizing the price of a system is often confused with not factoring in the cost of using a system. However, there is a big difference between the two. The price in question in this example is more in regards to the immediate off-the-shelf cost of purchasing the system. Now that we know the difference between the two, make sure to avoid the drawback of emphasizing this cost over your business needs. If your needs are drastic enough, there is no investment to high you can make to achieve business processing success.
#6: Not Testing The ERP Software
Last but not least, don’t forget to test out the ERP system. Even if you have qualified a system to the extent of your requirements, testing it with real examples could show you the true power of its use for your business.
Choosing The Right ERP Software For Small Business
Choosing the right ERP software for small businesses comes down to avoiding commonly made drawbacks. However, in combination with that, it also helps to choose one based on how they match with your business needs and requirements. Overall, doing this will best help you solve any immediate and long term hurdles that come from managing business processes.
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