Increasing Importance of ERP in Small Business Undertakings

ERP, as we all know, refers to a software systemsustainable advantage in the marketplace. Most small
that helps in the automation of business processes ofbusinesses are family managed businesses and are
an entire organization. Businesses big or small benefitperceived to be slow when it comes to technology
greatly from the increased efficiencies resulting fromadoption. The high costs associated with ERP also
successful ERP implementations. Scalable and robustdeter some of them from adopting it wholeheartedly.
ERP applications, which can adapt themselves to theStories of ERP related nightmares abound in the
changing requirements of the enterprise, are in high -marketplace. The high level of customization required
demand these days.in the software systems has the potential to sap an
ERP solutions designed for small businesses help inorganization of its time and money. Companies who
improvements in various processes like supply chain,have adopted proprietary software's for their ERP
production management and customer relationshiphave found themselves hostage to the ERP vendor.
management. Incremental improvements in theseEvery change, every little customization requires the
systems help businesses to respond faster to thepermission of the ERP vendor. Such experiences
queries of their customers. By providing a responsiveprove to be a deterrent for ERP adoption in the SME
and alert customer service businesses can cultivate asegment.
loyal base of customers.On the other hand, open source ERP systems allow
These days, web-enabled ERP systems, whichthe source code to be modified and reduce an
provide authorized users to access an organizationsorganizations dependence on its vendor. Open source
information network from any location across theERP is the way to go for small businesses. ERP
globe, are in high demand. ERP systems helpsoftware, which have been built from ground up
organizations to integrate all the functions of ausing open source technologies, have the potential to
business like finance, accounts, and human resourcessignificantly lower marketing and licensing costs. Since
on to a single framework. Web enabled ERP systemsopen source software's allow the source code to be
allow users to view this framework from remotemodified to suit the organization's requirement, certain
locations and conduct business effortlessly across thesecurity issues arise. But rising cost pressures and the
globe.steep cost of using proprietary ERP software have
ERP systems can transform the way organizationsforced organizations to consider open source ERP
conduct their businesses and can be a source ofsystems.