Is Small Business ERP Right for You?
Small businesses often face a dilemma in deciding how to invest in order to gain the greatest return. In pure startup mode, businesses must invest in an operational and efficient foundation that will directly help in building the company. That's where small business ERP implementation comes into play.
Decision making is driven more by gut feeling rather than data and hard facts. These methods may be effective in early phases of the business, but once past that crucial startup phase, neglecting to invest can slow you down. Investing in appropriate ERP solutions (Enterprise Resource Planning) can significantly boost growth and profitability.
Hunting for small business ERP prices online is notoriously difficult. Most top vendors want to speak to their prospects first, then give a custom solution and price. That makes sense. But it also makes it very hard for small businesses to get an idea of affordability.
The truth is that there are affordable small business ERP solutions. Above all, proper implementation of such a solution will actually save money in the long run. Consider how much time and manpower you will save by choosing an ERP solution that will automate many of the tasks your employees currently perform with your current unsynchronized software. You will also be able to integrate your ERP with your other common office software, creating a more streamlined process which will in turn reduce the likelihood of costly errors in accounting.
Successful small and medium businesses often find themselves in the unique position of having a tremendous amount of data in a variety of formats without the personnel or resources to effectively process and analyze it. With the right small business ERP solutions in place, your business will have a better handle on daily functions and also have longer-term analysis and reports that will help your business grow and reach its full potential.
Nothing has a more significant impact on the long-term success or failure of your ERP system than the quality of ERP implementation. Done well, you’re more likely to experience a greater ROI (Return of Investment) in a much shorter time frame. If the implementation process was poorly executed, you could waste a lot of time and money without ever seeing any advantages. That being said, you need to evaluate the total cost of ownership (TCO) for your chosen ERP. It’s this figure that you need to budget for and to measure your ROI against.
Just as importantly, ERP allows a measure of efficiency and control over your business that is not possible to achieve otherwise. Without ERP, often business is managed through spreadsheets, manual processes and paper, possibly augmented with disparate business applications such as stand-alone accounting software, typically based on older closed architectures that limit interoperability.
A well executed ERP implementation can enable change and provide ongoing savings that can help you sustain and grow your business. Not only will you be operating at a competitive advantage, but you can incur major growth and profitability․
To learn more about ERP and if it's the right step for your business, speak with one of our experts! You can reach us at +1 818-484-5004 or email us at sales@biz-techservices.com. Or, read about what we offer on our Acumatica and Sage 100 pages.
The Importance of System Integration in Businesses
In today’s day and age, when companies want to stay ahead of the game they need their systems to work synchronously. Organizations that don't have system integration in place see significant increases in cost and resource consumption.
What is System Integration?
System integration is the method of connecting different sub-systems into one larger system that functions as a single source. In regard to software solutions, system integration is commonly defined as the process of associating various IT systems, services and/or software to enable them to function seamlessly together. System integrations are typically done one of four ways; Horizontal Integration, Vertical Integration, Star Integration and Common Data Integration.
The main reason for businesses to use system integration is the growing need to improve productivity and quality of day-to-day operations. The goal is to get organization and business IT systems to communicate with each other through integration. This accelerates information outflow and reduces operational costs. System integration is not only used to connect an organization’s internal systems, but to also integrate third parties that organizations operates with.
System Integration Methods
Horizontal Integration
In Horizontal Integration, a separate sub-system is used as an interface layer between other sub-systems. This layer is often referred to as an Enterprise Service Bus. This technique allows each sub-system to have a single interface to communicate with. One benefit of using Horizontal Integration is each sub-system can be changed or replaced without having to revise other systems.
Vertical Integration
Vertical Integration is a method where system components are integrated by creating 'depositories', starting with the most basic function to the most complex. Normally, this method is simple and only involves a limited number of systems. However, a hindrance of this integration is it may be more difficult to manage in the long run as any new functionality will require its own 'depository'.
Star Integration
Star Integration is when a systems sub-systems are connected with other sub-systems using point-to-point connections. Above all, this allows for better functionality. A major drawback of this integration is as systems increase, the number of integrations increase as well. This leads to difficulty managing the integrations.
Common Data Integration
Common Data Integration helps systems avoid having the adapter convert to and from each application format. Systems using this technique set a common or application-independent format, or they provide a service that does the transformation to or from one application into to the common application.
Why is it Important?
A system integrator is an independent entity that uses technical and project management activities to integrate commercially available software. Using a variety of programs that do not integrate with each other can make it impossible for employees/admins to work effectively or for the organization to achieve its goals. Having your data in one central location will also reduce costs and storage compared to having multiple systems simultaneously. Businesses often struggle when the task of managing their data is not aligned. If your systems and processes are not working together, it can be very tedious and time-consuming to manage everything individually. Most importantly, by integrating, you reap the benefits of efficiency and effectiveness, whilst reducing the disruption caused by having data from multiple sources. This naturally leads to better analysis of data.
The Disadvantages of Not Using System Integration
- Reduced Employee Productivity — If employees are to be productive they mustn’t be bogged down with unnecessary admin. When staff have to manage multiple tasks such as order processing and invoicing via separate systems, the tasks take longer to complete and the risk of errors is increased.
- Lack of real-time information — In addition to being labor-intensive, transferring data between systems causes data to be out of sync. Overlapping databases prevent business owners from having an accurate view of business performance. Critical decisions are therefore made slowly, if at all.
- Constant upgrades and excess cost — Maintaining multiple systems is expensive and requires substantial IT resources. Once a system is upgraded more changes will need to be made to other systems so that they can still work together.
For a list of services Biz-Tech Services can integrate for you, check out our Acumatica and Sage100 pages. If you can’t see your favorite service, our skilled programmers will find a solution. To speak with one of our experts please call us at +1 818-484-5004 or email us at sales@biz-techservices.com.
