Small businesses operate in a chaotic environment, both in business and IT. At the end of 2023, they were still grappling with economic instability and uncertainties surrounding new advancements in artificial intelligence and automation. Today, small businesses must focus on growth with a small workforce while combating inflation, rising interest rates, and labor shortages. They are also looking for ways to leverage generative AI and automation technologies. Automation tools offer almost limitless possibilities for speeding up processes that are often done manually in small businesses, increasing efficiency, and reducing human error. Automation also allows small business employees to focus on more strategic work, which can increase employee satisfaction and retention.
Factors to consider when choosing an ERP system for a small business
Experienced small businesses see technologies such as ERP systems with automation and AI features as tools to face challenges. According to an IDC survey, 78% of small businesses plan to increase their technology spending over the next 12 months. When choosing an ERP system, it is worth considering several key aspects:
- Support from employees and management: it is crucial for employees and management to support the implementation of the ERP system. Among long-standing employees of small businesses, there will certainly be those who are not proficient with new technologies. Therefore, educating the staff is essential.
- Aligning business processes with the system: ERP systems work better without significant modifications. Adapting business processes to the system’s capabilities allows for quicker implementation and can bring benefits over time.
- Training: before starting the implementation, key employees should be trained in the new system. This process should not be too rapid to enable employees to fully understand and adapt to the new tools.
- Modular systems: modules are components of configurable applications that are more flexible and easier to maintain than custom software.
Trends in ERP systems for small businesses
Current trends in small ERP systems include:
- Flexible licensing: small businesses grow quickly and have smaller budgets, so flexible fee structures are key.
- Artificial intelligence and automation: process automation, driven by AI programs, can speed up work, save money, and minimize errors.
- System collaboration: companies implementing an ERP system for the first time often need other technologies, such as CRM, MES, and mobile functions.
- Industry specialization: small businesses often turn to ERP systems tailored to their industry, especially in complex or highly regulated industries.
Practical Tips for Implementing ERP
The ERP market is rapidly moving towards technology that enables organizations to compete and succeed in the digital world. Here are some tips for small businesses implementing an ERP system:
- Internal analysis: consider what problems need to be solved and what the current internal resources are.
- Choosing the right partners: select vendors and service partners who understand your business needs.
- Understanding system fundamentals: ask vendors about system architecture, available APIs, and development tools.
- Active participation in implementation: be actively involved in the implementation process and manage changes to ensure a smooth transition to the new system.
To fully meet the function of an ERP system in a small business, it is important to approach its implementation correctly. A well-done foundational work: defining and understanding needs, as well as choosing the system and implementation partner, guarantees a successful implementation.
