What do you think stops an SME (Small-to-Midsized Enterprise) to decide whether to go for an ERP (Enterprise Resource Planning software) or stay with mutilple solutions for their daily business operations?
Here are a few that I already know:
1. Resist for change
2. Inability to trust a new service provider
3. Not willing to spend
4. Don't feel the latent or upcoming business need
What am I missing?
There is also quite a learning curve for associates with this kind of implementation and many managers fear it will disrupt their daily operations.
MBA, CQE, CSSBB
the first and the main cause (to stop SME) is in the following = not having knowledge of what is the stage (or step) of SME's development...
because if you understand that there is your SME at the stage from growth till maturity (but not start-up), so it is obviously ...
as if you are a child or ans younfg man and you choose what you shoud have to good and quickly development at your 5-6 years or 20-23 years old
hope, I could help you...you are welcome! ;)
best regards for you and your business,
Here's another resist point:
As an IT guy I'd strongly recommend businesses (of all sizes) stay away from software that locks their data away in proprietary binary formats or worse, stores their data online. Providing an API is a start, but designing a good one should be left to an experienced systems architect - definately not a job for your average programmer!
a) Short of Resource.
b) Limited Budget so wont be able to Hire Technical Staff for ERP.
It is not the willingness to spend, but looking at the saving vs the cost. Many small businesses are using labor that doesn't have that high of a cost; An ERP isn't going to save a lot in labor dollars. Also, the high price of an ERP system is a large investment for a small business and it doesn't directly touch the customer. Some may argue that point, but I have never seen an ERP system deliver goods to a customer’s loading dock. Tell me to, but so does a phone call.
The Sm. Business owner is juggling cash and requirements. Hiring staff to help move information around the enterprise gives him the ability to meet those changing requirements faster, more dynamically and with a personal touch that any ERP will not. And when the staff isn’t doing ERP like functions they can do something else. The ERP system doesn't do anything when it is not ERP'ing.
Just my 2 cents.
Thank you everyone for your very well thought out and informative answers.. !
I think many companies resist the risk of change; both the spending part and the risk of messing up something that "works". The challenge of IT projects is that the customer wants benefits in business whereas the providers interest usually stops when the project is up an running. Consequently the customer is left alone achieving their goal with the new tools.
Suggest a project that does not end with the installation and go live of the technical stuff but ends with the process having been updated and that the customer has achieved its operational targets (not only the technical ones)
In my experience, this comes down to cost for most small business owners. They fail to see the customization benefits in terms of efficiency of ERPs over the cost benefits of cheaper out-of-the-box solutions. Many times I make this analogy, "It's like a tailored suit. Definitely more expensive than off the rack, but fits perfectly and makes you feel like a million bucks."
I worked for a start-up that was extremely cost conscience. We must have tried half a dozen OTC CRMs, switching constantly to try to find one that would do what we wanted without us having to become experts on their software. In some cases we were just asking too much of the software in our quest to find a cheap Swiss army knife solution. Looking back, we wasted more time and effort trying to make a round peg fit into a square hole, that we could have probably gone with an ERP for the same cost in sweat any money.
As a business strategist, who places great emphasis on mindset and model, I would have to add to your list of answers: the absence of a growth plan, a model to follow. The most important reason a business misses or overlooks opp's for advancement is because they are not focusing on the plan to do so, the short-term vision and are most likely not measuring ROI and benchmarks.
The bottom line to your question is, because it is not at the forefront of their present stage of growth.
Many small businesses are concerned with the cost and value that the new system may bring. If they can't easily find the value in it then they won't want to risk the little money they have. They are willing to spend when they see and can easily calculate the amount it will save them. Not wanting to change also plays a big role if they don;t have a need for things to change. I would say all your points are correct to some extent.