Pros

Shared Information
A key benefit of ERP software is that it provides the various departments of your company with the same
snapshot of important business information. In many small companies, departments have their own
information systems, creating information silos that other departments cannot access or share. When an
order progresses through the company, for example, departments such as order processing, production
control and dispatch have to re-enter data and search for information about stock levels, lead times and
customer requirements. With an ERP system, all relevant data is available to those departments,
eliminating the need to re-enter data, reducing the risk of error, improving productivity and speeding up
the time to fulfill orders.

Decision Making

The availability of consistent data improves the speed and quality of decision making. Your management
team can identify any potential production bottlenecks that might affect delivery times or affect
productivity levels. Financial controllers obtain an immediate, up-to-date picture of orders, work in progress
and stock levels to improve financial planning. Production planning staff can manage stock levels
efficiently in line with orders and delivery schedules. Human resources staff can identify the need for
recruitment or redeployment in line with changing business needs. Senior managers have an overall
picture of operations so they can make effective decisions on investment and resource allocation and
respond quickly to changing business opportunities.

Transformation

Deploying an ERP system can help you transform different aspects of your business and cope with the
challenges of growth. By reducing duplication in administration, streamlining processes such as order
processing and production planning, ERP systems free staff to concentrate on more important tasks and
deal with increasing volumes of business efficiently. By equipping employees with powerful business tools,
ERP systems enable your team to make a greater contribution to efficiency and profitability.

Cons

Risks

ERP systems offer small businesses many important benefits. However, implementing an ERP system
carries significant risk. A company-wide deployment represents a major investment in time, effort and
capital. The cost of a complete ERP system may be beyond the means of a growing business. Although you
can deploy individual modules for different departments as funds are available, you would not reap the full
benefits of a company-wide system for some time. Deployment also can lead to disruption as employees
go through a learning process to adjust to the new system.

Leadership

To achieve a balance between the risks and rewards of an ERP system, you need to identify priorities, lead
the change from the top and allocate resources to training and project management. Seek advice from a
consultant with experience of ERP in small businesses so you select the right system for your company and
manage the change effectively.

REASONS WHY DECIDE TO HAVE ERP

1. Transparency: Profitability is key for organizations of all sizes, but for medium sized companies a lack
of profitability can prove to be fatal in a much shorter time span. This is why they very rapidly need to
identify throughout the organization which products, departments and customers are profitable and
which are not. Also, a proper cost allocation is key. A well-implemented, reliable ERP system, is crucial in
this strategy execution.
2. Data reliability: This second point is closely linked to the first one. To take the right decisions, you
need data you can trust. Tailor-made systems, which have grown over many years through specific
programming and interfacing with other applications, often become a very complex and obscure
spaghetti. The consequences of a modification of one flow towards others within the system become
very hard to predict. The system tells that one product is not profitable anymore while users can have a
gut-feeling that this is untrue This is fatal for the trust in the system. Once trust is broken, the ERP
system loses its relevance.
3. Integration of new technologies: a lot of medium-sized companies need to move fast, innovate, stay
ahead of competition, propose new products and services, in order to attract new clients and keep faithful
ones. The implementation of a state-of-the-art ERP solution allows a fast deployment of innovating
technologies (mobility, real-time Business Intelligences & xRM, multi-channel sales, etc.)
4. Reduce Total Cost of Ownership (TCO): if analyzed thoroughly, the maintenance cost of tailor-
made legacy systems often reveals to be gigantic, offering no radical evolution perspectives. The TCO of
an existing system is often considered low, as there is a limited license cost and many direct costs are
already depreciated from an accounting point of view. But if you consider all the components of the cost,
including the dedicated personnel which are needed to support the system (limited outsourcing
possibilities), the missed opportunities regarding innovation, the cost of wrong business decisions due to
misinformation; then a lot of medium-sized companies soon realize the potential savings and additional
sources of revenue behind a powerful ERP system.
5. Reduce operational risk: the knowledge regarding tailor-made legacy systems often is contained in
just a couple of brains in an organization. The potential discontinuation that could occur if something
happens with these valuable brains is enormous. The advantage of an ERP system that can be
implemented using standard available functionalities is then double: any person that has experience with
the implemented ERP solution can work on it (modify the configuration), the use of standard available
functionalities also guarantees smooth upgrades to new releases of the solution.
An ERP software can be:

The ultimate Safe house: As a startup, there are lots of important documents, finance reports, invoice,
etc. to be handled with care, and loss of these documents in case of any mishap occurring can be a matter
of failure for your venture. However, a cloud based ERP software can keep all your documents safely on its
cloud server (Encrypted to secure it from cyber theft as well), and provide access to you, anytime and
anywhere with ease.

Burgeoning to heights: Admirably, the most amazing feature of the ERP software for startups is its
scalability. A Startup can grow in a jiff and the same goes for their needs. Thus, ERP software companies
like Sage Software, an ERP Software provider in India not only paves a way for you to bloom swiftly, but
also grows with you at the same time, fulfilling all your needs as and on demand.

No pain, still gain: Startups are said to be a risk-takers business, either you succeed, or fail miserably,
but when you have an ERP software backing you up, fool proof tactics and process planning can be
designed that can aid you succeed, kicking out the risk from your business. Since ERP software have the
ability to manage all your processes from a single platform, it can help the management to get a single
view of their operations and avoid data duplicity if any.

Just lose it: Unhealthy business factors such as out-of-budget expenditures, excessive production time
and cost, ill-managed supply chain, faulty or delayed payrolls, etc. are better if kept at bay as they can
affect your reputation as well as hamper growth. However, implementing ERP software can help you lose
these factors forever, with its timely and automated process plannings.

See it all: Most often, a startup is dependent upon the finance it receives from the venture capitalists,
who seek better sales and ROI for their investments. ERP software can help you maintain a transparency in
all your dealings. Your stakeholders can themselves have a knowledge off all your processes, sales, and
expenditure and manage their share/dividend through it.
1. Bid adieu to your CA
Cloud-based Enterprise Resource Planning technology (ERP) is a software tool, generally an application,
through which processes such as accounting, financials, and inventories can be managed and automated.
ERP gives enterprises a competitive advantage by increasing their operational efficiency and streamlining
their processes. From Financials, Inventory and Customer Service to Payroll, Recruitment and Projects, the
ERP takes the hassle out of the day-to-day business functions. It can take care of all aspects in the lifecycle
of a large, small or medium enterprise, giving companies an edge, especially those still trying to find their
feet, since all the register- and book-keeping can be a drain on resources.

2. Save data on the Cloud

The twenty-first century has brought the boon of data capture. The cloud of bits and bytes will help you
store your data safely and for eternity. You can access all data at the click of a mouse, no matter where you
are, without you having to stretch your purse strings. This will take an enormous burden off your shoulders
and mitigate risk. Security of data is a sensitive issue, particularly for businesses, to protect their
databases from manipulation and misuse and also to ensure the integrity of customer information.

Related Read: 10 Game Changing Startups That Indians Should Know About !

3. No chance of human error

ERP brings you at par with the biggest of your field as far as resource management and customer
relationship management are concerned. Now you can match up to the financial muscle of big businesses
and have an as-good if not better business and organization plan. And since, you would have a software do
all that for you, there is no room for human error.

4. You will grow; you will hire

As a start-up grows revenues will increase, more employees would need to be hired, and new departments
will have to get created and extra resources will have to be allocated. Generally, in such a scenario, the
accounting department takes the hardest hit with having to take care of new employees, their
compensation, taxation, etc. All this and much more can be taken care of by ERP. Every sale gets recorded
immediately; the details of every invoice is made available to the accounting department; every item can
be tracked from the warehouse to the distributors to the eventual customers. Generally, all ERP modules
can be integrated, obviating any external migration of data. The seamless integration will keep you up and
running 247.

5. Fight corruption and fraud

ERP removes any chance of oversight or miscommunication. The accounts get updated the second data is
entered, reducing leakages and chances of fraud. According to a survey conducted by the Association of
Certified Fraud Examiners (ACFE) in the USA, a typical organization loses 5% of its annual revenues to
fraud and abuse. In todays age, fraud has become more complicated and increasingly difficult to detect,
especially when it is collusive in nature and committed by mid- and upper-management who are capable of
concealing it. The survey further says that such frauds cause loss running in billions of dollars. Apart from
the revenue loss, such activities can lead to audit problems, sullying the reputation of an organization. For
all such reasons, paper-based accounting or invoice generation is fast becoming a thing of the past.

Also Read: How Technology Can Help In The Fight Against Corruption !

6. Easy-to-use and maintenance-free software

You may be tempted to think that all this will require the maintenance services of specialized software
personnel. You can tick this box as well. All maintenance issues will be handled by the ERP provider,
leaving you hassle-free. Moreover, to use the ERP, you dont need any infrastructure, except for a
computer and an Internet connection.

7. Its value for money

But the biggest surprise is that Cloud-based ERP is affordable and is offered by several vendors in the
market. It comes at a fraction of the expenses that would occur in the normal course, making this
technology ideal for a start-up or a medium-sized enterprise. Simply put, its money well spent.
The advantages presented by the ERP are:

Optimization of business processes.

Accurate and timely access to reliable information.

The ability to share information between all components of the organization.

Elimination of unnecessary operations and data.

Reduction of time and costs of litigation

Then, as each module of the ERP system enters the same real-time database, another
advantage is that no duplicate records or playback operations, ie, redundancy is avoided.

The performance of all work units that make up their business because better use time is
increased. If you previously had to make reports and take them from one place to another, now
the time is spent on other activities.

To improve performance and save time, optimize the control and analysis of management
decisions there in the long term, reduced costs for the company.

Another obvious advantage is in terms of customer service, because the response time is
reduced attention to them.

When a company has an ERP system is more competitive in the environment in which it
operates.

Disadvantages of ERP are:

The installation of the ERP system is costly. ERP consultants are very expensive take
approximately 60% of the budget.

The success depends on the skills and experience of the workforce, including education and how
to make the system work properly.

Resistance in sharing internal information between departments can reduce the efficiency of the
software.

The systems can be difficult to use.

Change of staff, companies can employ administrators who are not trained to manage the ERP
system of the employing company, proposing changes in business practices that are not
synchronized with the system.

Having an ERP system has many advantages, but does not guarantee the total success of the
company. Organizational culture, know how to involve staff and anticipate changes that will
suffer the organization using this system of administration, are important elements for the
completion of the implementation.

 The effectiveness of the ERP system may decrease if there is resistance to share information
between business units or departments. Due to strong changes that implementation of the ERP
system brings in the culture of work, there may be poorly trained or disinterested in making use
of the same staff

The benefits of having an ERP system are not presented immediately with the implementation of
the software, they will be evident long after the system is running.

The culmination of the implementation depends on the ability and skill of the workforce, also
involves education and training, to make the system is correctly applied.

In conclusion, it is essential to analyze whether the ERP system will be implemented in your company is
right for your needs and that does not violate the interests of their organization.

Also keep in mind that a bad strategy implementation can lead to failure of the same.

if i miss any Advantages and Disadvantages of ERP System. please let me know

Advantages of ERP (Enterprise Resource Planning) System:

1. Complete visibility into all the important processes, across various departments of an organization
(especially for senior management personnel).

2. Automatic and coherent workflow from one department/function to another, to ensure a smooth
transition and quicker completion of processes. This also ensures that all the inter-departmental activities
are properly tracked and none of them is missed out.

3. A unified and single reporting system to analyze the statistics/status etc. in real-time, across all
functions/departments.

4. Since same (ERP) software is now used across all departments, individual departments having to buy
and maintain their own software systems is no longer necessary.

5. Certain ERP vendors can extend their ERP systems to provide Business Intelligence functionalities,
that can give overall insights on business processes and identify potential areas of
problems/improvements.

6. Advanced e-commerce integration is possible with ERP systems most of them can handle web-
based order tracking/ processing.

7. There are various modules in an ERP system like Finance/Accounts, Human Resource Management,
Manufacturing, Marketing/Sales, Supply Chain/Warehouse Management, CRM, Project Management, etc.

8. Since ERP is a modular software system, its possible to implement either a few modules (or) many
modules based on the requirements of an organization. If more modules implemented, the integration
between various departments may be better.

9. Since a Database system is implemented on the backend to store all the information required by the
ERP system, it enables centralized storage/back-up of all enterprise data.

10. ERP systems are more secure as centralized security policies can be applied to them. All the
transactions happening via the ERP systems can be tracked.
11. ERP systems provide better company-wide visibility and hence enable
better/faster collaboration across all the departments.

12. It is possible to integrate other systems (like bar-code reader, for example) to the ERP system through
an API(Application Programing Interface).

13. ERP systems make it easier for order tracking, inventory tracking, revenue tracking, sales forecasting
and related activities.

14. ERP systems are especially helpful for managing globally dispersed enterprise companies, better.

Disadvantages of ERP (Enterprise Resource Planning) Systems:

1. The cost of ERP Software, planning, customization, configuration, testing, implementation, etc. is too
high.

2. ERP deployments are highly time-consuming projects may take 1-3 years (or more) to get completed
and fully functional.

3. Too little customization may not integrate the ERP system with the business process & too much
customization may slow down the project and make it difficult to upgrade.

4. The cost savings/payback may not be realized immediately after the ERP implementation & it is quite
difficult to measure the same.

5. The participation of users is very important for successful implementation of ERP projects hence,
exhaustive user training and simple user interface might be critical. But ERP systems are generally difficult
to learn (and use).

6. There maybe additional indirect costs due to ERP implementation like new IT infrastructure,
upgrading the WAN links, etc.

7. Migration of existing data to the new ERP systems is difficult (or impossible) to achieve. Integrating
ERP systems with other stand alone software systems is equally difficult (if possible). These activities may
consume a lot of time, money & resources, if attempted.

8. ERP implementations are difficult to achieve indecentralized organizations with disparate business
processes and systems.

9. Once an ERP systems is implemented it becomes a single vendor lock-in for further upgrades,
customizations etc. Companies are at the discretion of a single vendor and may not be able to negotiate
effectively for their services.

10. Evaluation prior to implementation of ERP system is critical. If this step is not done properly and
experienced technical/business resources are not available while evaluating, ERP implementations can
(and have) become a failure.

boost productivity
reduce operating costs
streamline data flow
encourage collaboration
delivery business insights
improve decision-making

The flexible, affordable and fully scalable, eresource ERP is the ideal solution for newly
emerging and smaller companies, as well as for growth-oriented SMEs requiring multi-site
and multi-currency capabilities.
It is especially well suited to improving the manufacturing processes of engineer-to-order,
make-to-order and high-volume make- to-stock manufacturers in the automotive, electronics,
capital equipment, and discrete products industries.
Built on excellence
eresource's cost-effective, web-based ERP solution, combined with eresource's flexible and
affordable pricing structures, provides SMEs with a technology solution having all of the
functionality and benefits of a "big company" ERP system - but with minimal investment and risk.
The eresource ERP for SMEs solution is built on the rich technology heritage and deep
industry expertise of eresource Infotech Pvt. Ltd. and has a history of success in the
manufacturing sector, providing comprehensive solutions that are used by the world's leading
manufacturing companies.
Implementation is fast and easy, without the need for expensive hardware and high fees for
licensing, implementation, upgrades and maintenance. This also helps avoid additional financial
burden for SMEs sector. Once implemented, the result is maximum value with minimal
investment and low risk. Eresource ERP offers a powerful ERP solution for manufacturers and a
high value proposition for SMEs who would rather expand resources on building a successful
business.