ERP within reach of any midsize company

FOR mid-sized enterprises, an ERP (Enterprise Resource Planning) system promises big gains, helping to grow revenue, increase productivity companywide, improve efficiency throughout the enterprise and manage costs.

ERP integrates a variety of disparate systems, such as financials, SCM (Supply Chain Management) and CRM, automating time-consuming processes and streamlining operations. With a unified view of cross-company information, executives can ultimately make better decisions about corporate objectives and strategies.

Today more and more midsize companies are looking to replace outdated ERP systems or jump into the technology for the first time. A recent research survey says, "in the small and midsize business (SMB) segment, which continues to outgrow the overall market, companies are buying new ERP systems in response to new customer requirements and the desire to participate in the global market."

ERP solutions tailored to the midmarket abound, making it a buyer's market. In this age of mergers and acquisitions, many of these organizations were once small companies, and now, as midmarket organizations, they need to consolidate various software systems and standardize business processes. Most companies in this space are coping with increasingly complex operating environments, aging technology - including outmoded ERP systems - proliferating business-management software and, of course, the need to grow revenue.

Midsize companies also face challenges specific to their industries. Businesses that make consumer product goods are concerned about regulations and reporting requirements, while public-sector organizations are worried about maintaining customer loyalty. Also, manufacturers are concerned about the commoditization of their products. A robust ERP package can help address these issues, as well.

As most of the midsized companies have implemented an ERP or MRP (Material Requirements Planning, the precursor to ERP) system, there is still a few numbers of others who don't already have an ERP or MRP. For those businesses, the reasons to take a leap into ERP, which is largely considered necessary infrastructure for midsize companies, are many and compelling.

At the same time, it is also to be noted that many ERP implementations in the midmarket are quite mature and ripe for replacement.

Many midmarket companies must now also choose an ERP system on which to standardize after multiple systems were installed, perhaps through mergers, across the enterprise. Although it's not necessary, midsize companies seem to prefer consolidating their business-management applications in one ERP package, at least in part to cut down on integration headaches.

Vendors are aggressively vying for customers, launching new ERP solutions designed to meet needs particular to the midmarket and pricing them to meet a midmarket company's budget. To further entice midmarket customers, vendors are also developing vertical solutions that target certain industries, such as manufacturing, pharmaceuticals, fleet management and construction, with built-in functionality that cuts down on customization.

In an effort to simplify the notoriously difficult implementation process, vendors are also developing ERP systems that can be delivered in ways friendly to organizations with limited IT resources; some vendors now offer web-based solutions, and some are figuring out ways to offer this complex technology on demand.

Factored together, the decreasing costs of hardware, infrastructure technology and ERP software put a modern version of these once-epic business-management packages within reach of any midsize company.

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