Enterprise Resource
Planning (ERP) for Small Businesses
Enterprise Resource Planning (ERP) is a way to integrate the data and processes of an organization into one single system.
Planning (ERP) for Small Businesses
Small businesses are in a precarious position in that they have essentially the same ERP requirements as the largest enterprises, they just have less resources with which to implement and manage an ERP system.
A small, five-person manufacturing company has the same requirements as a General Motors in that they both need to order raw materials, receive them into a warehouse, manufacture a product, sell the product, deliver the product, invoice the customer, collect the money, and account for it all at the end of the year.
But, the five-person manufacturing company doesn't have the money, personnel, or skills to implement SAP, PeopleSoft, or the traditional ERP solutions most all of which are cost-prohibitive to a small business.
As a result, many small businesses are forced to "piece together" systems from multiple different vendors. This causes needless hours to be spent rekeying data, critical company information to be stored on individual personal computers, or worse, on pieces of paper, where the data is not available to others in the organization and cannot be accessed in real time.
These disparate systems not only increase support costs and lower customer satisfaction, but they actually inhibit productivity due to the time and resources needed to compile simple but accurate management reports or even close the books every month.
The two key components of an effective ERP system are a common (i.e. "fully integrated") database and a modular software design.
A common database is the system that allows every department of a company to store and retrieve information in real-time so that the data is entered only once and then shared through the system so that any authorized employee has access to all of the information and functions needed to perform their jobs. Using a common database also allows the information to be more reliable, accessible, and easily shared.
A modular software design is a variety of programs that can be added on an individual basis, usually as "modules", to improve the efficiency of different functional areas of the business. These modules link into the common database, so that all of the information between the departments is accessible in real time.
These modules can include functions for Sales Management, Warehouse Management, Financial Management, Supply Chain Management, Manufacturing Resource Planning, Human Resources, and much more.
There are several methodologies to implementing enterprise resource planning systems and it's important, before beginning and implementation to put the proper time into planning and understanding business, and all departemental functional requirements as well as existing systems and processes.
Regardless of whether you choose to deploy an ERP system on a departmental or divisional level, or for the entire enterprise, it's critical to select the right application and to have the knowledge and skills to successfully plan and integrate the data and processes from all areas of the business.
This is where the experts at CyOp can help!
CyOp's services combine the best features of open source software with the best features of Software as a Service (SaaS), enabling organizations to effectively own, control, and further develop and modify as needed, their own ERP software application without the large expenses of hardware acquisition & maintenance, software licensing, data center facilities or an IT staff.
The CyOp team has extensive experience in enterprise computing and has successfully implemented dozens of ERP solutions resulting in increased revenues and growth for our clients.
By leveraging Openbravo's open source ERP software with CyOp planning, implementation and support services, even a smaller businesses can afford an enterprise-class ERP solution with no capital expenses, no hardware to maintain, no software license fees, and no need for on-site technical personnel. On-premises solutions are also available if desired.
We can also integrate robust point of sale (POS) options for clients that operate in the retail or restaurant industries.
For more information on CyOp's open source ERP solutions, please contact us or signup for a FREE Business Process Assessment.
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